As the crypto market recovers, it’s worth taking a look at the recent performance of the frog-themed memecoin, PEPE. In a stark contrast to the ongoing recovery, PEPE is falling for three consecutive days, leading some to question the future of this particular cryptocurrency. This decline in price has also caused the coin to break below the lower trendline of the symmetrical triangle pattern, which could potentially be a sign of further downfall.
Pepecoin has recently gained attention as the PEPE craze enters the world of NFT (non-fungible tokens). In the midst of the uncertainty in the crypto market, PEPE’s price had been fluctuating between converging trendlines, showcasing the formation of the symmetrical triangle pattern. This bearish breakdown occurred on May 29th when the coin’s price fell through the pattern’s support trendline, indicating a sustained bearish trend.
Since then, the post-breakdown fall has caused Pepecoin to tumble 6%, currently trading at $0.00000136. While local support temporarily halted the decline at $0.00000132, it remains to be seen whether this level can sustain under the ongoing selling pressure. If the momentum continues, we may see this support level flip into viable resistance, intensifying the supply pressure.
A pessimistic scenario could see the Pepecoin price revisiting the $0.000001 level in the upcoming weeks. The breakdown below the triangle pattern suggests a resumption of the prevailing downtrend, with early targets for potential downfall being swing lows formed during the pattern’s development. Consequently, the PEPE price is likely to face demand pressure at $0.00000132, followed by a direct hit at $0.000001.
Another factor to consider is the Exponential Moving Average (EMA). Over the past week, the 50 EMA slope has acted as dynamic resistance, maintaining a steady downtrend for PEPE. Moreover, the Vortex Indicator showcases a wide gap between the negatively aligned VI+ and VI- slopes, reflecting an aggressive bear trend in Pepecoin.
The uncertain future of Pepecoin raises questions about the stability of memecoins in general. While some may believe that these coins will eventually surge again, others argue that the rapid rise and fall of such coins reveal their lack of solid backing. The contentious nature of these cryptocurrencies invites skepticism from both critics and enthusiasts alike.
As always, it is imperative to conduct thorough market research before investing in cryptocurrencies, as the market can be highly unpredictable. The opinions of the author and this publication are solely their own and should not be taken as financial advice.
Source: Coingape
