PEPE Coin Faces Steep Drop of Nearly 50%, Hits 3-Month Low
The popular PEPE cryptocurrency has experienced a significant decline, plummeting almost 50% in the past month to reach its lowest price in three months. This downturn has resulted in substantial losses for investors amidst the prevailing bearish sentiment in the meme coin market.
While concerns about further corrections persist, a promising technical pattern has emerged that could present a buying opportunity for long-term holders.
PEPE Enters Bearish Cycle with Potential Recovery Opportunity
The exponential moving averages (EMAs) are indicating a rise in bearish pressure, as the 200-day EMA nears a crossover above the 50-day EMA. This crossover, known as a Death Cross, traditionally serves as a strong bearish indicator.
If this crossover occurs, the selling pressure may intensify, causing PEPE's price to decline further.
At present, the 200-day EMA is only 8% away from completing the Death Cross formation. In the event of continued bearish conditions, PEPE may struggle to bounce back in the short term. Such technical patterns often lead to prolonged downtrends across different assets.
Despite these bearish signals, PEPE's Market Value to Realized Value (MVRV) ratio hints at a possible shift in momentum. With the MVRV ratio hitting -29%, PEPE finds itself in the "Opportunity Zone."
Historically, when the MVRV ratio falls between -17% and -30%, it indicates that the selling pressure is close to exhausting itself.
A negative MVRV ratio implies that investors are holding unrealized losses, reducing the likelihood of further selling. This scenario could initiate an accumulation phase where long-term holders start purchasing at discounted rates.
Following past trends, PEPE's price might be gearing up for a potential recovery.
PEPE Price Forecast: Recouping Losses
PEPE is presently trading at $0.00000941, slipping below the crucial support level of $0.00001000. This dip marks a three-month low for the meme coin, positioning it among the month's worst-performing assets. The continuous selling pressure has hindered PEPE's ability to regain upward momentum.
The looming Death Cross raises concerns about additional declines, potentially pushing PEPE below the $0.00000839 support level. Breaching this threshold could trigger more selling activity, exacerbating investor losses.
Should the bearish trend persist, PEPE may experience an extended period of consolidation at lower price points.
However, a turnaround remains feasible if PEPE manages to reclaim $0.00001000 as a support level. Flipping $0.00001146 into a support zone would invalidate the bearish outlook and steer momentum towards a potential recovery.