Pepe coin price crashed on Monday morning, matching the performance of other top cryptocurrencies like Bitcoin, Ethereum, and Solana. It tumbled by 10% and moved to its lowest level since March 12, meaning it had plummeted by 77% from its all-time high.
This crash means that $10,000 invested in the token at its all-time high in November is worth just $2,250 today. This article conducts a technical analysis exploring whether buying the Pepe price dip is safe and how low it may get if the Ethereum price hits $1,000.
Pepe Price Crash Happened as Ethereum Plunged
One reason for the Pepe coin price crash is its classification as an Ethereum-based token. ETH has become one of the worst-performing coins in the past few months as it crashed from over $4,000 in November to $1,600 today.
Historically, Ethereum-based tokens often underperform when Ethereum itself is not doing well. This also explains why tokens like Shiba Inu, AAVE, Jasmy, Floki, and Turbo have plunged this year.
However, Pepe’s crash was also caused by the ongoing sense of fear among market participants. The fear and greed index has dropped to the extreme fear zone of 24, while the broader one tracked by CNN Money has plummeted to 4, its lowest point since 2020.
The ongoing sell-off accelerated after Donald Trump’s Liberation Day speech, during which he announced the imposition of sweeping tariffs on all countries. All exports to the US will be charged at least a 10% tariff, with China and Vietnam paying over 50%. Analysts now expect these tariffs will lead to a recession in the US.
Pepe Price Technical Analysis
The daily chart shows that the Pepe price has crashed in the past few days. It has dropped to a low of $0.000006440, its lowest point since March 12.
Pepe was nearing the crucial support at $0.000005833, which was its lowest point in March. This is notable since the coin is now about to form a double-bottom pattern with a neckline at $0.000009185.
A double bottom is a popular bullish reversal sign. Notably, this pattern is forming following a falling wedge pattern, another potential reversal indicator.
As a result, the Pepe price is likely to drop to the double-bottom pattern at $0.000005833 and then bounce back. The longer-term outlook for the Pepe coin price is bullish, with the initial target to watch being $0.00001438, the 38.2% Fibonacci Retracement point, which is about 127% from the current point.
A drop below the double-bottom point at $0.00000583 will indicate more downside, with the next point to watch being $0.0000050.
READ MORE: Pepe Coin Price Prediction: How Low Can It Crash if ETH Falls to $1K?
