PEPEThe recent price action is raising concerns among traders, as the bullish momentum appears to be ending. After trying to bounce back, the token faced strong resistance at the $0.00000963 mark, indicating a possible shift in market sentiment.
As the bulls struggle to control and sell pressure on the rise, the door is open for further downside, left investors doubt that PEPE can recover or if further losses are imminent.
The purpose of this article is to examine the token’s loss of bullish momentum after it failed to break through the $0.00000963 resistance. By analyzing the current the market trends and technical signals, the aim is to highlight the small upside risk and to check if the meme coin is set for further downside or possible going back soon.
Bulls Lose Steam: PEPE Set For Further Deterioration
PEPE recently entered bearish territory on the 4-hour chart, dipping just below the 100-day Simple Moving Average (SMA) and approaching the key support level of $0.00000766. This drop below the 100-day SMA indicates declining strength, and when sellers are in control, crypto currency faces the possibility of further losses.
Analysis of the 4-hour Relative Strength Index (RSI) shows that the signal line has fallen to 43%, following a brief rise above the 50% threshold suggesting that shopping the pressure is weakening, as the RSI moves deeper into bearish territory. Generally, an RSI reading below 50% means that sellers are gaining control, which may lead to further downward pressure on the price.
Also, the meme coin is showing significant negative momentum on the daily chart, as it has met resistance at $0.00000963, as evidenced by the bearish candlestick formation. As sellers are gaining the upper hand, the meme coin is close to breaking below the 100-day SMA, which is an important factor. support A level that, if breached, can intensify selling pressure that could set the stage for further losses.
A closer look at the RSI structure on the 1-day chart shows that the RSI signal line has dropped to 53%, previously reaching 55% which suggests that buying pressure is beginning to subside. In particular, the RSI remaining above the 50% threshold indicates that the stock is in a strong position, but a downward movement may indicate an impending loss of bullish power.
Price Action Breakdown: Can Meme Coin Find Support?
After confronting resistance at $0.00000963, the price of PEPE has started to show weakness, falling below the 100-day SMA and moving towards the support level of $0.00000766. A break below this threshold would reveal increased selling pressure, which could result in an extended decline to the $0.00000589 support level and above.
At that time, a recovery above the $0.00000963 level may renew the bullish momentum, which may cause the price to rise to the resistance level of $0.00001152. A successful break above this level could pave the way for price growth and increase traders’ optimism, indicating a further upward trend. habit.
Featured image from Shutterstock, chart from Tradingview.com