The crypto market has been a hurdle. Many coins have lost value, but meme coins have been hit the hardest. Investors believe they have little real use and rely mostly on hype and their community. One such token is Pepe (PEPE), a frog-themed token that won the hearts of investors after a 230% rally, reaching its all-time high price of $0.0000259 on Nov. 14, 2024.
However, it has since fallen and is now facing woes in the market. Currently, it is at a 71% decline from its all-time high. With market sentiment at extreme fear levels, is this a buying opportunity or a warning sign?
Pepe Price Decline: What’s Happening?
According to CoinMarketCap data, Pepe is currently trading around $0.000007319, with a market cap of about $3 billion. It has declined 29% in the last 30 days and over 60% in the last 60 days. This bearish pattern has given way to various conversations in the market, with many investors and experts unsure of the turn of events.
The Pepe price broke below a key support level of $0.0000079, which is currently acting as resistance. If selling pressure continues, the token could fall further, testing $0.0000056 as the next support level.
Interestingly, less than a week ago, crypto analyst Ali, also known as Alicharts, identified a parallel channel trading pattern for Pepe that suggested an incoming free fall. According to Ali, Pepe tends to drop below its lower support trend line, then rises to its upper resistance trend line now and then. This is a pattern that has been consistent since March 2024.
Ali emphasized that Pepe’s recent movements could lead to a spike in selling pressure, causing the price to drop below its lower support. If this happens, the meme coin would see a 70% decline to about $0.0000031, making recovery nearly impossible.
Can Pepe Bounce Back?
Despite the heavy losses, some believe the price of the Pepe meme coin has room to recover due to the unusual price swings of most meme coins, which often surge during bullish market sentiment. If Bitcoin and the general crypto market experience a significant rally, the token might rise from its current levels. However, if the market remains bearish, Pepe can continue to fall for a long period.
Nonetheless, Pepe traders remain optimistic. Some investors see the token’s predicament as a chance to accumulate, trusting that its value might rise in the next bullish phase.
Later this year could be a make-or-break point for Pepe, primarily due to US interest rate data releases, as these generally affect overall markets.
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