Pepe price has been in a free fall over the past few months, and the downtrend may continue after it formed a risky death cross pattern. It was trading at $0.0000091, its lowest level since May 8, and 43% below the highest point in May.
Pepe Price Analysis as Death Cross Forms
The daily chart indicates that the Pepe token has been in a strong downtrend over the past few months and is currently hovering at its lowest point since May 8. It has formed a death cross pattern as the 50-day and 200-day moving averages crossed each other. A death cross is one of the most bearish patterns in technical analysis.
The Average Directional Index (ADX) has pointed upwards, a sign that the downtrend is gaining momentum. Similarly, the Relative Strength Index (RSI) and the MACD indicators have continued falling this month.
Therefore, this price action signals a potential drop towards the support at $0.000005740, the lowest swing in March and April this year.
On the positive side, there are signs that the Pepe price has formed a falling wedge pattern. This pattern comprises two descending and converging trendlines. In most cases, this pattern leads to a bullish breakout when the two lines are nearing their confluence.
The falling wedge formed after the coin rebounded strongly, meaning that it is part of the bullish pennant. A bullish flag is a highly popular continuation sign, meaning that the coin may soar.
READ MORE: Top Crypto Price Predictions: Hedera (HBAR), VELO, and Flare (FLR)
Why Pepe Coin Token is Crashing
There are a few reasons why the Pepe Coin price is in a strong downward trend. First, there is a risk of a wider war in the Middle East now that Donald Trump has struck top Iranian nuclear sites like Fordow and Natanz. This strike means that crude oil prices and inflation will rise, making it harder for the Federal Reserve to cut rates.
Second, the Pepe price has crashed as the ongoing crypto market crash accelerated. Most tokens, such as Shiba Inu, Bitcoin, and Solana, have all plunged in the past few weeks.
Third, the token has dropped as data shows that whales and smart money investors have sold it in the past few weeks amid capitulation. Smart money holdings have crashed by 11% to 219 billion tokens in the last 30 days.
Finally, Pepe price has imploded because June is historically one of the worst months for cryptocurrencies. Volume typically drops during the month because of summer travel.
READ MORE: Axelar Price Prediction: Here’s Why AXL Token May Rebound
