Pepe coin price dropped for three consecutive days, invalidating a previously bullish pattern and forming another bearish one.
Pepe (PEPE), the third-largest meme coin globally, fell to a low of $0.00002117, marking its lowest level since December 6.
This decline coincided with broader cryptocurrency market losses. Bitcoin (BTC) fell to $104,400, retreating from its record high of $108,000. The total market cap of all cryptocurrencies dropped by 5% to $3.82 trillion.
Pepe plunged in a high-volume environment. According to CoinGecko, its 24-hour volume was $2.2 billion, much higher than Shiba Inu’s (SHIB) $725 million.
The ongoing crypto sell-off is happening as traders wait for the upcoming Federal Reserve decision. This will be an important decision because it will set the tone for what to expect in 2025. Analysts expect that the bank will slash interest rates for the third time this year and hint towards a pause in the coming year.
Interest rate decisions significantly impact risky assets like stocks and cryptocurrencies. Historically, these assets perform well during rate cuts and when the Fed adopts a dovish stance.
Nansen data shows signs of smart money exiting the market. The number of tracked smart money traders holding Pepe has dropped to about 95 from over 115 two weeks ago. Their collective Pepe balance has also declined to 7.5 trillion tokens from last month’s 8 trillion.
Pepe coin price analysis
The daily chart highlights a strong bearish trend for Pepe in recent days. The coin initially formed a falling wedge pattern, a typically bullish indicator, but this pattern has now been invalidated.
The coin has also dropped below the ascending trendline that connects the lowest swings since November 26. Additionally, it has formed a three red crows pattern, which happens when three bearish candles follow each other.
In the near term, Pepe’s price may continue falling. The bearish trend will solidify if the coin drops below the 50-day moving average at $0.00001933 and the Ichimoku cloud. Conversely, a bullish reversal would be confirmed if the coin surpasses key resistance levels at $0.000026 (the November 14 swing high) and the all-time high of $0.00002833.
Read the full article here
