The PEPE price could be in trouble from here after failing to maintain its upward momentum. This has led to a restart of the bearish momentum, and this could continue if bulls fail to pull up the price. In the event that bears do win out in this situation and maintain control, the PEPE price could continue to fall. According to crypto analyst Alan Santana, such a development could drive the PEPE price back towards levels not seen since early 2024.
PEPE At Risk Of Further Decline
Crypto analyst Alan Santana took tot he TradingView website to warn investors of a possible decline that could be coming for the PEPE price. This is taken from the fact that the meme coin retraced from its gains from earlier in the week, and has started to flash some bearish signals.
Related Reading
One of the first bearish signals the crypto analyst points out is the volume. According to him, the PEPE chart shows a rising bearish volume coupled with a break below the MA200. This comes with the correction that the meme coin has suffered, pushing it back below $0.000009.
Santana explains that the price drop for the PEPE price so far has only happened at the 0.618 Fibonacci retracement level. This leaves the 0.786 Fibonacci retracement level, but not without risk. Apparently, there is the possibility that the PEPE price could still drop to reach this level. However, the crypto analyst believes that this will not disturb its long-term bullish structure.
If this level breaks, though, then it could be very bad for the meme coin. As the crypto analyst explains, it would be “crazy” If this happens. Such a move could trigger a large crash, that could send it toward new monthly lows. Furthermore, this is coupled with the strong possibility of a bearish move.
Targets For The Crash
In the case of the PEPE price testing the 0.786 Fibonacci retracement level, and breaking below it, the crypto analyst sees a large crash coming for the price. There are two support levels outlined, depending on how strong the bulls hold up.
Related Reading
On the first support, the crypto analyst expects it somewhere around $0.00007, which is more than a 25% crash from here. If this level doesn’t hold, then the analyst expects the PEPE price to move toward the next available support just above $0.000004.
If the second scenario does play out, then the PEPE price could be looking at an over 50% price drop from its current level. However, if the price does hold up from here, then it could be moving above $0.00001 once again.
Featured image created with Dall.E, chart from Tradingview.com
Source link
Scott Matherson
https://www.newsbtc.com/news/pepe-coin/pepe-bearish-50-price-crash/
2024-10-04 17:00:23
