Pepe price remains under intense pressure this week amid the ongoing crypto market crash. It plunged to a low of $0.0000115, its lowest point since July 10 and 21% below its highest point this month. This article examines whether it is doomed or poised for a strong comeback.
Pepe Price Technical Analysis
The daily chart shows that the Pepe Coin price is sending mixed signals. On the negative side, it has formed a double-top pattern at $0.00001486 and a neckline at $0.000008340, its lowest point on June 22.
A double-top pattern is a common, highly bearish chart pattern that leads to more downside. By measuring its height and then the same distance from its neckline, we can estimate that the Pepe price will crash to $0.000004818.
Additionally, the Relative Strength Index (RSI) has crashed below the neutral point of 50, while the two lines of the MACD have formed a bearish crossover.
The bearish Pepe price forecast will become clearer if it drops below the 50-day moving average, where it is stuck at. It will then be confirmed if it moves below the neckline at $0.000008340.
On the positive side, the Pepe price remains above the ascending trendline that connects the lowest swings since March 11. It is also forming a symmetrical triangle that may break out in either direction.
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Whales are Buying Pepe Coin
There are three main reasons why the Pepe price may still rebound despite its weak technicals. First, there are signs that whales continue to accumulate the token. Data shows that whales hold 8.8 trillion tokens, a 0.59% seven-day increase.
Similarly, smart money investors hold 600.9 billion Pepe tokens, a 0.61% weekly increase. While the whale and smart money buying is modest, it is a positive thing because they are not selling despite the recent plunge.
The other positive is that the volume of Pepe coins on exchanges continues to move downwards. It has dropped to 250.4 trillion tokens, down from last week’s high of 252 trillion. Falling exchange balances are one of the most bullish fundamentals because they signal that investors are not selling.
Further, the Pepe price may rebound because, as we predicted, the Bitcoin price has formed a bullish pennant pattern, a common continuation pattern. The two lines are about to converge, which will lead to a strong bullish breakout in the coming days.
Therefore, the most likely Pepe price forecast at this point is neutral as the coin may move in either direction. A bullish breakout will be confirmed if it moves above the double-top pattern at $0.00001485. Such a move will lead to more gains, potentially to $0.000020.
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