Pepe, the frog-themed Ethereum-based meme coin, is down by 2% today at press time as broader crypto market witnesses a slowdown. The broader memecoin segment has dropped 20% over the last 30 days to reaching $60.29 billion.
As Pepe meme coin holds ground above $5 billion market cap, the declining trend risks a potential pullback to the $0.000010 psychological mark.
Pepe Meme Coin Price Analysis
In the daily chart, the Pepe meme coin price action showcases a new higher-low formation, a new lower-high formation near $0.00001350 with long-wick candles. The reversal in Pepe tests the 50% Fibonacci level at $0.00001222, risking a potential breakdown as it currently trades at $0.00001226.
The immediate support for Pepe is the rising 50-day EMA at $0.00001159, followed by the converging 100 and 200-day EMAs at $0.000010 near $0.00001100. As the selling pressure grows, the MACD and signal lines are hinting at a potential crossover.
However, the short-term uncertainty results in a flat movement, delaying the positive crossover. The crucial support for Pepe remains the $0.00001037, highlighted by the 30-day low.
Through an optimistic lens, if Pepe cryptocurrency avoids closing below the 50% Fibonacci level, a bounce back could challenge the $0.000015 crucial resistance that created multiple peaks in the last month.
Pepe Derivatives Signal Downside Risk
In the derivatives market, the short-term pullback has led to a sharp pullback in the PEPE open interest. It has dropped by 1.20% to $562.30 million. Additionally, the 1.86 million long liquidations are nearly two times of short liquidations of $928k.
This suggests a massive wipeout of buyers in the derivatives market. This has dropped the long-to-short ratio to 0.9512, signaling a broader market anticipation of a steeper correction.
In conclusion, Pepe’s recent 2% dip, coupled with the technical outlook, suggests growing downside risk. A closing below the $0.00001222 mark aligning with the 50% Fibonacci level could accelerate the correction toward the key $0.000010 support. However, bounce off from the Fibonacci level may revive bullish trend to $0.000015.
