- The PEPE price has fallen by 40% since May 23.
- PEPE risks breaking down from a key support level.
- Can PEPE put an end to its downward movement?
PEPE rallied on May 7, doubling in two weeks and culminating with a high of $0.0000163.
However, the downward trend wiped out most of the gains, taking PEPE close to its May 7 lows.
Since PEPE is approaching its pre-breakout resistance, let’s analyze the price action and see what lies ahead.
PEPE Price Corrects
The daily time frame chart shows that PEPE has fallen inside a descending parallel channel since May 12.
While such channels usually contain corrective movements, all other signs show a bearish trend.
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Specifically, PEPE trades in the channel’s lower portion, indicating that momentum is weakening.
Moreover, PEPE failed to bounce at the 0.5 Fibonacci retracement support level, instead breaking below it.
Additionally, technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling.
The RSI is below 50 and the MACD is negative, both signs of a bearish trend.
The closest support area is at $0.0000090. A breakdown below will confirm that the PEPE trend is bearish.
PEPE Completes Bounce
The wave count gives a decisively bearish PEPE price prediction, suggesting new lows are likely.
According to the count, PEPE completed a five-wave downward movement (red) after its all-time high.
Then, it finished an A-B-C correction (green) that ended between the 0.38-0.5 Fibonacci retracement resistance area.
If the count is accurate, PEPE’s relief rally is over, and the price will resume the downward trend that started after the all-time high.
PEPE has to move above $0.0000136 (red) to invalidate this count, meaning that the downward movement is not impulsive.
No Signs of Relief
The PEPE price has fallen by 40% since May 12 and shows no signs of strength.
On the contrary, the wave count suggests the long-term trend is bearish.
A breakdown below $0.0000090 could lead to new lows.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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