PEPE Dips 12% Amid Bearish Trend; Can $0.000006931 Hold?

Over the past week, Pepe, a frog-themed memecoin, has exhibited solid negative price action, with its value receding by over 16%. This pessimistic mood has further been mirrored on the daily chart.

As of press time, the PEPE token was valued at $0.056987, marking today’s top loser with a decline of over 12%. Consequently, its intraday market cap has also been impacted, stabilizing around the $2.939 billion mark.

PEPE/USD 1-Day Chart (Source: CoinMarketCap)
PEPE/USD 1-Day Chart (Source: CoinMarketCap)

This negative sentiment can be attributed to the overall bearish sentiment within the meme coin market, which witnessed a 5.98% ebb to the $36.31 billion level in a single day. Despite this decline, the asset has maintained its position as the 24th most prominent crypto in market capitalization.

Meanwhile, the meme coin’s 24-hour trading volume contrasted sharply with the bearish sentiment, surging massively by 61.32% to $760.708 million. This indicates increased trading activities in the PEPE market despite the general market slowdown.

PEPE Price History

As tracked on TradingView, Pepe has been on a sustained bearish trend since reaching its all-time high of $0.00001718 three months ago. This decline has forced the meme coin to retest its previous lows multiple times, showing signs of struggling to break out of the downward trend.

PEPE/USD 1-Day Chart (Source: TradingView)
PEPE/USD 1-Day Chart (Source: TradingView)

Following the market downturn on August 5, the frog token experienced a momentum shift, driving its price up by over 50% toward the $0.000008739 mark, a key resistance level.

However, upon reaching this level, the frog memecoin faced substantial selling pressure, resulting in a pullback aimed at retesting its recent low of approximately $0.00006931.

Can $0.00006931 Low Hold

Adding to the bearish outlook, market analysts suggest that the memecoin is currently in a third bearish wave of the ABCD pattern. The asset could retest the $0.000005856 support level should this scenario come into play.

The 50-day and 200-day moving averages, above the meme coin’s current values of $0.000009998 and $0.000008282, respectively, further support this bearish sentiment.

On the brighter side, if the $0.00006931 low holds and PEPE’s price rebounds, there could be a chance for a bullish reversal, potentially challenging the key resistance at $0.000008739. A breach above this level could solidify PEPE’s upward trend, with the potential to target higher resistance around the $0.00009823 mark.

Also Read: Memecoin mayhem: Why Dogecoin and Shiba Inu are taking a tumble?

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