Pepe coin price remains one of the most resilient tokens in the recent market downturn. Touted as the most organically-driven meme coin, the price action of Pepe has maintained a rather bullish overtone so far. However, Pepe fell below a crucial long-term lagging indicator, and if it fails to reclaim the support, the future of Pepe may be bleak. This is particularly worrisome for a sizeable amount of tokens at risk of falling into unprofitability if Pepe bears prevail.

Will Pepe Coin Price Sink Further?

Pepe price action shows a significant downtrend, confirmed by the lower highs and lower lows over the recent period in the 4-hour timeframe. The asset sports some key support and resistance levels around the following zones:

Resistance 1 (R1): 50-day exponential moving average (EMA) ($0.00000874)
Resistance 2 (R2): 200-day EMA ($0.00001033) 
Support 1 (S1): Previous low ($0.000007)
Support 2 (S2): Psychological zone ($0.000006)

If Pepe coin price action fails to break above the current resistance level, it may drop 21% to $0.000006.

The recent candlesticks form a bearish continuation pattern after a brief consolidation, suggesting further downside potential. The current formation looks like a potential bear flag.

The prevailing downtrend suggests that Pepe is in a corrective wave pattern, with the potential for further declines as the bearish momentum continues.

Technical indicators show that the price of Pepe coin could continue to move down in the short term.

The price is below the 50 EMA ($0.00000878) and the 200 EMA ($0.00001033), indicating strong bearish momentum, while the Relative Strength Index (RSI) is at 47.45, slightly below the neutral level but not oversold, indicating there is room for more downside.

The Chaikin Money Flow (CMF), which shows the buy or sell pressure on an asset, is at -0.04, suggesting a modest selling pressure.

The volume has decreased since August 5, while the price has been trending upward. This is a classic bearish divergence indicating a possible continuation of the downtrend.

pepe coin price chart

If Pepe rises above $0.000001031, it may invalidate the bearish thesis as it signals a strengthening market. Pepe may rise higher to $0.000012 and $0.0000135, which marks the next major resistance zone.

On-Chain Metrics Reveal Risk Zones

Coinalyze data shows Pepe open interest (OI) is down 5.8% in the last 24 hours from yesterday’s 9.7%. The fall in OI, coupled with the consolidating price, signals a potential downside for Pepe coin price. 

The increasing selling pressure puts Pepe holders in a difficult position. If bears prevail at the current resistance level, 17.28 trillion tokens (out of 241.52T) could sink underwater, increasing the number of Pepe holders in losses, per IntoTheblock.

Currently, 57.8% of Pepe holders are in profit. However, a shift downward could reduce this number to 50.6%.

If the markets turn bearish, over 10 trillion tokens currently gathering losses right above the current resistance zone could shift into profitability.

The post Pepe Coin Price Prediction: 21% Potential Drop Threatens $135M in Tokens appeared first on CoinGape.

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Filed under: News - @ August 8, 2024 7:23 am