Pepe Coin Price Analysis Hints 20% Downside Risk As Sellers Break 50-day Support

Pepe Coin Price Analysis: The memecoin PEPE, themed around a frog, recently experienced a price correction after peaking at $0.0000172 in late May. This downturn saw the altcoin’s price fall by 25%, landing at $0.00001274, while its market cap decreased to $5.36 billion. Concurrently, as Bitcoin struggled to maintain its position above the $70,000 mark, the broader cryptocurrency market faced additional downward pressure. This situation suggests that the market may be entering a period of extended correction or consolidation.

Also Read: Pepe Coin Price Prediction As Bullish Sentiment Bursts, Rally To $0.00002 Incoming?

Pepe Coin Price Analysis: Will Nascent’s Investment Spark a Rebound?

Since mid-April, the PEPE coin price witnessed an aggressive rally under the influence of an ascending trendline. The steep dynamic support bolstered buyers with the new higher low formations and uplifted the asset from $0.00000393 to $0.000017 registering a 335% growth.

However, the altcoin market witnessed a slowdown in recovery as Bitcoin prices consolidated in a narrow range for the past two weeks. Amid the uncertainty, the PEPE price developed a notable top at $0.0000172 and triggered a correction below the aforementioned support.

The loss of its nearly two-month-long support level is likely to increase selling pressure on PEPE, setting the stage for a significant decline. Following the breakdown, the asset’s price could potentially plummet to $0.00000881, with a further possible drop to $0.000006 if the downward trend continues.

However, a long tail rejection candle on Friday showcased the traders’ interest in buyers PEPE at a discounted price.

Also Read: Nascent Snatches 447.67 Billion PEPE Tokens Amid PEPE Price Dip, What’s Next?

In a recent analysis shared by SpotOnChain, an on-chain data tracking service, it was reported that Nascent, a venture capital firm, capitalized on the market’s dip by purchasing 447.67B PEPE tokens valued at approximately $5.48 million from Binance. This strategic acquisition has already yielded a 4.8% unrealized profit, amounting to $262K.

6 hours ago, Nascent (@nascentxyz) accumulated the first 447.67B $PEPE ($5.48M) from #Binance at the dip.

And now makes $262K (+4.8%) in unrealized profit!$PEPE currently ranks first in the VC’s portfolio, followed by $MKR with an est. total profit of $2.45M (+248%).

Follow… pic.twitter.com/KzfE6R3wJQ

— Spot On Chain (@spotonchain) June 8, 2024

PEPE now stands as the leading asset in Nascent’s portfolio, outperforming others with an estimated total profit of $2.45 million, reflecting a staggering 248% increase.

Therefore, the lack of follow from PEPE of downside will project weak conviction from sellers. As a result, the asset could stabilize above $0.0000108 and seek support for a rebound higher.

The buyer’s attempt to flip overhead resistance of $0.000017 is crucial to obtain the signal of the prolonged rally.

Technical Indicator

• Exponential Moving Average: The 50-day EMA offers buyers additional support at $0.0000108 to prevent a prolonged downfall.
• Average Directional Index: A notable drop in ADX slope to 32% indicates the current correction could recuperate the exhausted bullish momentum after a new all-time high.