Pepe Coin, one of the most talked-about meme coins, has seen its price tumble sharply, erasing the impressive gains it made earlier this month. After surging to an all-time high, the coin has been unable to sustain its momentum, falling below the crucial 50-day Exponential Moving Average (EMA) on the daily chart. A rare bearish flag pattern now looms large, pointing to a potential 35% decline.
Bearish Patterns Dominate Pepe’s Technical Outlook
The coin’s sharp decline was triggered by a doji candlestick formation on December 9, often signaling a trend reversal. Since then, Pepe Coin has exhibited characteristics of a bearish flag—a chart pattern indicative of a continuation of downward momentum.
The pattern begins with a sharp vertical drop resembling a flagpole, followed by a consolidation phase that forms a rectangle-like shape. If the bearish breakout materializes, Pepe’s price could fall to $0.00001437, its recent low, and further to $0.00001190, a critical support level from September 29. This potential 35% decline highlights the bearish sentiment surrounding the coin.
Conversely, a breakout above $0.000020, just above the 50-day EMA, could invalidate the bearish flag. In such a scenario, Pepe might target the $0.00002563 level, marking the previous double-top pattern.
Futures Market Data Signals Waning Interest
Adding to the bearish outlook, Pepe’s open interest in the futures market has plummeted. After peaking at $359 million earlier this month during its price surge, open interest has now dropped to $123 million—its lowest since November 4.
Futures open interest reflects the total number of unfilled contracts and serves as a key indicator of market sentiment. While such a sharp decline often signals reduced demand, it occasionally precedes renewed buying momentum, as witnessed on November 5.
The Bitcoin Connection
Pepe’s price movements remain closely tied to Bitcoin’s trajectory. Bitcoin’s recent retreat below $100,000 has triggered a broader sell-off across the crypto market. If Bitcoin’s bearish momentum persists, Pepe and other altcoins may experience intensified selling pressure.
For now, all eyes are on Pepe’s next moves, as traders watch key support and resistance levels to gauge the coin’s future trajectory. Whether Pepe can reverse its bearish trend remains uncertain, but the current technical and market data suggest caution for investors.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Cardano (ADA) Faces Bearish Breakdown: Will Long-Term Holders Fuel a Rebound?
About The Author
