PEPEThe country’s recent price action is raising concerns among traders as the bullish momentum appears to be fading. After attempting to recover, the token faced strong resistance around $0.00000963, signaling a possible shift in market sentiment.
With bulls struggling to maintain control and selling pressure increasing, the door is now open for further downside moves investors to wonder whether PEPE can recover or whether more losses lie ahead.
The purpose of this article is to examine the token’s loss of bullish momentum after it failed to break the $0.00000963 resistance. By analyzing current market trends and technical signals, the aim is to highlight the increasing downside risks and investigate whether the meme coin is ready for further declines or a potential a reversal soon.
Bulls Losing Strength: PEPE Poised for Further Decline
PEPE recently entered bearish territory on the 4-hour chart, falling just below the 100-day Simple Moving Average (SMA) and approaching the crucial support level at $0.00000766. This drop below the 100-day SMA signals a weakening in strength, and with sellers taking control, the cryptocurrency faces the possibility of more losses.
An analysis of the 4-hour Relative Strength Index (RSI) indicates that the signal line has fallen to 43%, after a brief rise to the 50% threshold, indicating that buy the pressure is weakening as the RSI moves deeper into bearish territory. Normally, an RSI reading below 50% implies that sellers are gaining control, which could lead to further downward pressure on the price.
Furthermore, the meme coin is showing notable negative momentum on the daily chart after encountering resistance at $0.00000963, as evidenced by a bearish candlestick formation. With sellers gaining the upper hand, the meme coin is poised to break below the 100-day SMA, a crucial support level which, if exceeded, could intensify selling pressure and possibly pave the way for more losses.
A closer look at the RSI formation on the 1-day chart shows that the RSI signal line has fallen to 53% from previously reaching 55%, indicating that buying pressure is starting to wane. In particular, the fact that the RSI remains above the 50% threshold indicates that the asset is still in a relatively strong position, but the downward move could indicate an impending loss of bullish strength.
Price Action Breakdown: Can the Meme Coin Find Support?
After being confronted resistance at $0.00000963, the price of PEPE begins to show weakness, falling below the 100-day SMA and moving towards the $0.00000766 support level. A break below this threshold could trigger increased selling pressure, potentially resulting in a prolonged decline towards the support level at $0.00000589 and beyond.
Meanwhile, a recovery above the $0.00000963 threshold could reignite bullish momentum, leading to a price surge towards the $0.00001152 resistance level. If this level is successfully broken, it could pave the way for further price growth and boost traders’ optimism, indicating a more sustained uptrend trend.
Featured image from Shutterstock, chart from Tradingview.com