Pepe (PEPE) has enjoyed an impressive rally, surging by 23.7% over the past month. However, that momentum now appears to be slipping as the token shows signs of fatigue. Recent market data reveals a 2.46% decline on the daily charts, raising concerns that PEPE could be heading for a deeper correction.
Bearish Sentiment Clouds PEPE’s Future
According to a report from AMBCrypto, the meme coin faces mounting challenges as bearish sentiment grows. PEPE is currently stuck within a symmetrical triangle—often a sign that a breakout is on the horizon. However, whether this breakout will move upward or downward remains uncertain, with the odds stacking against the bulls.
PEPE recently encountered significant resistance at the $0.00001068 level, a point that has halted previous rallies twice. On the downside, the token is flirting with support at $0.00001025. If buyers fail to defend this level, PEPE could slip further, possibly testing the lower edge of the triangle where higher liquidity may generate some rebound momentum.
Key Technical Indicators Flash Warning Signs
The technical outlook for PEPE hints at further downside risks. The Relative Strength Index (RSI) currently sits at 48.46, falling below the neutral 50 mark. This suggests that sellers are gaining control, and market sentiment is leaning bearish.
Adding to the pressure, the Moving Average Convergence Divergence (MACD) has signaled a “death cross”—an indicator that occurs when the MACD line crosses below the signal line. This bearish crossover suggests traders are increasingly inclined to sell, further undermining PEPE’s chances of reversing the downtrend.
Another critical metric that reflects PEPE’s weakening outlook is Open Interest, which measures the total number of active futures contracts. Coinglass data shows that Open Interest in PEPE has dropped by 3.61%, with the current value standing at $165.20 million.
The decline in Open Interest suggests that traders are closing their positions, reducing buying pressure and making a continued price drop more likely. If this trend persists, PEPE may soon break below its current support, triggering further losses.
Also Read: PEPE Memecoin Surges 1.5% – Is This The Ideal Buy-the-Dip Opportunity Near $0.00001024?
Will PEPE Rebound or Break Down?
While PEPE’s technical indicators paint a gloomy picture, the next few trading sessions will be crucial. If the $0.00001025 support holds and buyers return with force, the meme coin could retest resistance levels and potentially break above the symmetrical triangle. However, if the selling pressure intensifies, PEPE could tumble further, testing the lower boundary of the triangle.
With bearish sentiment and declining market interest, PEPE’s ability to maintain its recent gains is uncertain. Traders will need to watch closely for signs of either a recovery or a deeper slide in the coming days.
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.
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