Pepe Coin Price Prediction: 21% Potential Drop Threatens $135M in Tokens

Pepe coin price recently dropped below a key long-term support level, sparking concerns about its future. But it can potentially rise to $0.000012 or $0.0000135.
By Evans Karanja
Pepe Coin Price

Highlights

  • If Pepe falls below $0.000007, $135M tokens will be underwater.
  • Pepe price action flashed a death cross on the 4-hour chart.
  • Bearish volume-price divergence hints at a 21% drop for Pepe price.

Pepe coin price remains one of the most resilient tokens in the recent market downturn. Touted as the most organically-driven meme coin, the price action of Pepe has maintained a rather bullish overtone so far. However, Pepe fell below a crucial long-term lagging indicator, and if it fails to reclaim the support, the future of Pepe may be bleak. This is particularly worrisome for a sizeable amount of tokens at risk of falling into unprofitability if Pepe bears prevail.

Advertisement
Advertisement

Will Pepe Coin Price Sink Further?

Pepe price action shows a significant downtrend, confirmed by the lower highs and lower lows over the recent period in the 4-hour timeframe. The asset sports some key support and resistance levels around the following zones:

  • Resistance 1 (R1): 50-day exponential moving average (EMA) ($0.00000874)
  • Resistance 2 (R2): 200-day EMA ($0.00001033) 
  • Support 1 (S1): Previous low ($0.000007)
  • Support 2 (S2): Psychological zone ($0.000006)

If Pepe coin price action fails to break above the current resistance level, it may drop 21% to $0.000006.

The recent candlesticks form a bearish continuation pattern after a brief consolidation, suggesting further downside potential. The current formation looks like a potential bear flag.

The prevailing downtrend suggests that Pepe is in a corrective wave pattern, with the potential for further declines as the bearish momentum continues.

Technical indicators show that the price of Pepe coin could continue to move down in the short term.

The price is below the 50 EMA ($0.00000878) and the 200 EMA ($0.00001033), indicating strong bearish momentum, while the Relative Strength Index (RSI) is at 47.45, slightly below the neutral level but not oversold, indicating there is room for more downside.

The Chaikin Money Flow (CMF), which shows the buy or sell pressure on an asset, is at -0.04, suggesting a modest selling pressure.

The volume has decreased since August 5, while the price has been trending upward. This is a classic bearish divergence indicating a possible continuation of the downtrend.

pepe coin price chart
pepe coin price chart

If Pepe rises above $0.000001031, it may invalidate the bearish thesis as it signals a strengthening market. Pepe may rise higher to $0.000012 and $0.0000135, which marks the next major resistance zone.

Advertisement
Advertisement

On-Chain Metrics Reveal Risk Zones

Coinalyze data shows Pepe open interest (OI) is down 5.8% in the last 24 hours from yesterday’s 9.7%. The fall in OI, coupled with the consolidating price, signals a potential downside for Pepe coin price. 

LINK IO pepe oi

The increasing selling pressure puts Pepe holders in a difficult position. If bears prevail at the current resistance level, 17.28 trillion tokens (out of 241.52T) could sink underwater, increasing the number of Pepe holders in losses, per IntoTheblock.

PEPE IOMAP

Currently, 57.8% of Pepe holders are in profit. However, a shift downward could reduce this number to 50.6%.

If the markets turn bearish, over 10 trillion tokens currently gathering losses right above the current resistance zone could shift into profitability.

Advertisement

Frequently Asked Questions (FAQs)

1. What is the current outlook for Pepe Coin?

The current outlook for Pepe Coin is bearish, with a potential 21% drop if it fails to reclaim key support levels.

2. What are the key support and resistance levels for Pepe Coin?

Key support levels are $0.000007 (previous low) and $0.000006 (psychological zone). Resistance levels are at $0.00000874 (50-day EMA) and $0.00001033 (200-day EMA).

3. Is there a scenario where Pepe Coin's price could rise?

Yes, if Pepe Coin breaks above the resistance level of $0.00001031, it could invalidate the bearish outlook and potentially rise to $0.000012 or $0.0000135.
Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.