PEPE is currently trading near the $0.00000485 mark after breaking through a significant support level. The token has experienced a decline of over 17% this past week, reaching multi-month lows.
This price action has captured the attention of traders, who are closely monitoring whether this downward trend will continue or if a stable base is beginning to form.
Key Level Break Signals Continued Pressure
Analyst Crypto Patel has observed that the critical support level at $0.0000059 has been breached and is now acting as resistance. He interprets this shift as a clear indicator that the broader market trend continues to favor sellers.
“Until price reclaims it, HTF trend stays bearish,” he stated in a recent post.
Patel further highlights a weekly Fair Value Gap (FVG) that remains only partially filled. Additionally, he points to a sweep of liquidity below the multi-month lows. Based on his analysis and accompanying chart, these conditions suggest that PEPE's price could potentially decline further, targeting the $0.00000178 zone. He identifies this area as a likely point of interest for long-term investors.
Patel's analysis also draws a parallel between the current market setup and the conditions that preceded PEPE's last major rally. In that prior instance, the price experienced a breakdown, followed by consolidation, and then a sharp upward movement. The previous breakout resulted in gains exceeding 4,600%. He suggests that a similar pattern could emerge again, but only if the price finds support at lower levels and subsequently reclaims its lost ground. A sustained move back above $0.0000059 would signal a significant shift in market structure.
“HTF structure is not bearish forever. It’s preparing the next expansion. Watch the reclaim,” he advised.
As previously reported, PEPE also broke below its neckline support earlier this month, confirming a head-and-shoulders pattern. This technical development aligns with the current bearish market structure.
Trend Weakness Evident Across Indicators
The current price of PEPE remains below several key exponential moving averages, including the 20-, 50-, 100-, and 200-day MAs, all of which are trending downwards. This indicates a consistent weakness across the daily time frame. Until PEPE manages to achieve a closing price above these moving averages, the prevailing sentiment is likely to remain bearish.
Furthermore, the MACD lines are situated below the zero line and are exhibiting sideways movement, offering no immediate indication of a shift in momentum. Trading volume and volatility also appear to be decreasing, reinforcing the observation that buyers are currently hesitant to enter the market.
Declining Speculation Reflects Fading Interest
Data from CoinGlass reveals that PEPE's futures open interest has fallen to $193.5 million, a significant decrease from its peak of over $1 billion in mid-2023. This substantial drop suggests that fewer traders are utilizing leverage in their positions. While a reduction in leverage can lead to decreased volatility, it also reflects a market that is experiencing a cooling-off period.
Data from spot exchanges corroborates this trend. Netflows have predominantly been negative, indicating that more PEPE tokens are being withdrawn from exchanges than deposited. This pattern typically suggests a preference for holding the asset. However, the continuous decline in price demonstrates that demand has not kept pace with selling pressure. In recent weeks, both netflows and price action have flattened, signaling a temporary pause in trading activity.
