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PEPE price could be in trouble from here after failing to maintain its momentum. This has led to a resumption of bearish momentum, and this could continue if the bulls fail to push the price higher. If the bears succeed in this situation and maintain control, the price of PEPE may continue to fall. According to crypto analyst Alan Santana, such a development could return the price of PEPE to levels not seen since the beginning of 2024.
PEPE Is at Risk of Continued Downgrades
Crypto analyst Alan Santana took to the TradingView website to warn investors of a possible drop in the price of PEPE. This is taken from the fact that the meme coin went back to its gains earlier in the week, and has started to flash some signals.
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One of the first signs of a bearish crypto analyst points to volume. According to him, the PEPE chart shows increasing bearish volume with a break below the MA200. This comes with the correction that the meme coin has suffered, bringing it back below $0.000009.
Santana explains that the PEPE price decline so far has only occurred at the Fibonacci retracement level of 0.618. This leaves the retracement level at 0.786 Fibonacci, but not without risk. Obviously, there is a chance that the price of PEPE may fall further to reach this level. However, the crypto analyst believes that this will not affect its long-term bullish structure.
If this level breaks, however, it could be very bad for the meme coin. As the crypto analyst explained, it would be “crazy” If this happens. Such a move could cause a major crash, which could result in a new monthly low. In addition, this is accompanied by a strong possibility of a bearish movement.
Crash Targets
In the case of PEPE price testing the Fibonacci retracement level of 0.786, and breaking below it, the crypto analyst sees a big crash coming in price. There are two support levels defined, depending on how strong the bulls are.
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At the first support, the crypto analyst expects it somewhere around $0.00007, which is more than a 25% crash from here. If this level does not stop, the analyst expects the price of PEPE to continue to the available support just above $0.000004.
If the second scenario plays out, PEPE stock could be looking at a price drop of more than 50 percent from its current level. However, if the price rises from here, then it may go above $0.00001 again.
The featured image was created with Dall.E, a chart from Tradingview.com