Pepe [PEPE] experienced a remarkable upsurge over the past month, with gains amounting to 23.7%. Nonetheless, these profits are presently facing a precarious situation, as PEPE seems to be losing its upward momentum.
At present, the cryptocurrency has registered a 2.46% decrease on the daily charts, hinting at a possible continuation of its downward trend.
As per a recent evaluation carried out by CryptoCrypto, this decline looks set to persist due to the prevailing bearish market sentiment, coupled with a lack of significant buying pressure to sustain PEPE’s price upwards.
PEPE Encounters a Significant Hurdle
Currently, PEPE is trading within a symmetrical triangle pattern, a typical setup suggesting a potential breakout after a period of consolidation.
The token has recently encountered strong resistance at $0.00001068, a level that has twice blocked price surges, underscoring considerable selling pressure in that zone.
During this phase, PEPE has been hovering around a support threshold of $0.00001025. In the event this support level remains intact and there is a notable increase in buying activity,
we may witness a price rebound, which could lead to a retest of the resistance level and a breakthrough of the pattern, propelling PEPE towards the upper limit of the triangle.
However, in the scenario where the support level fails to hold, PEPE might retreat towards the lower support of the ascending triangle, an area abundant in liquidity that could potentially spark enough buying interest to drive the price upwards.
Can PEPE’s Support Threshold Weather the Storm?
Based on the analysis conducted by CryptoCrypto, it appears increasingly doubtful that PEPE’s existing support level will endure, given technical indications pointing towards mounting selling pressure from traders.
The Relative Strength Index (RSI) is presently positioned at 48.46, below the neutral threshold of 50.00, signaling a bearish market sentiment that PEPE’s price might align with.
The RSI gauges the speed and direction of price movements in an asset.
Moreover, the Moving Average Convergence Divergence (MACD) has recorded a “death cross,” underscoring a strengthening downward momentum.
This crossover takes place when the MACD line (blue) dips below the signal line (red), implying a greater inclination among traders to sell rather than hold the asset.
If this trend persists, PEPE could breach its support level, resulting in further price slumps.
Waning Interest in PEPE
Open Interest, used to assess market sentiment by tracking the buying and selling activities of participants, has indicated a surge in selling pressure at present.
According to figures from Coinglass, Open Interest in PEPE has decreased by 3.61%, currently standing at $165.20 million for the near future.
This dip in Open Interest suggests that more declines in PEPE’s price are probable, hinting at an inevitable drop from its current position.