PEPE MEMECOIN

PEPE Faces Sharp Drop as TRUMP Token Overtakes: Is $0.000010 the Key Support for a Reversal?

The meme coin market has faced a significant setback, dropping 13% in valuation over the past 24 hours, now standing at $102.28 billion. In the midst of this downturn, the newly launched TRUMP token has overtaken PEPE to become the third-largest meme coin by market cap, triggering a massive sell-off in PEPE. This shift has resulted in a sharp price drop of nearly 13%, pushing PEPE below the critical psychological threshold of $0.000015.

PEPE Price Analysis: Bearish Signals and Breakdown

The technical chart for PEPE signals continued bearish pressure. The coin failed to break through the local resistance trendline, resulting in four consecutive red candles, equating to a 26.63% price decline. The price has now breached the 38.20% Fibonacci retracement level at $0.00001670, confirming a bearish head-and-shoulders pattern breakdown.

Pepe Price Chart
Pepe Price Chart

With PEPE approaching a critical support zone near the 50% Fibonacci retracement level at $0.0000144 and the 200-day Exponential Moving Average (EMA), selling pressure remains high. The Relative Strength Index (RSI) is nearing oversold territory, and a bearish crossover between the 50 and 20 EMA lines suggests further downside potential.

If the selling momentum persists, PEPE could test the 78.60% Fibonacci level at $0.00001024, especially if the 200-day EMA fails to hold as support. However, if the broader market stabilizes, a recovery from the 200-day EMA could bring PEPE back to the broken neckline at $0.00001670.

On-Chain Data Shows Strong Support at $0.000010

Despite the ongoing downtrend, on-chain data reveals that more than 64.38% of PEPE addresses are still in profit. This translates to 255,040 addresses holding PEPE in the money. However, weak support exists between the $0.000013 and $0.000015 range, where 7.28 trillion PEPE tokens are held. The next significant supply zone lies between $0.000011 and $0.000013, with 25.53 trillion tokens.

PEPE on-chain levels
PEPE on chain levels

This suggests that PEPE could test the $0.000010 psychological support level in the coming days, though this zone is expected to provide a potential bullish reversal, giving PEPE a chance for recovery.

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: Will Vitalik Buterin’s PEPE Purchase Propel Coin to $1? Analyzing Pepe Coin’s Price Surge Potential

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