PEPE, the widely discussed meme coin, finds itself at a pivotal moment. A classic bearish chart pattern has emerged on its daily chart, signaling a potential significant price correction unless there’s a swift and dramatic shift in market dynamics.
The Technical Breakdown: A Head-and-Shoulders Formation
Following a notable 20% weekly decline and a further 7,5% drop in the last 24 hours, PEPE’s price action has formed a discernible head-and-shoulders pattern. This formation, a staple in technical analysis, is often interpreted as a precursor to a trend reversal downwards. Currently, the meme coin is retesting its crucial “neckline” support level, situated around $0,00001220.
The Downside Scenario and Key Levels to Watch
Should PEPE fail to decisively reclaim this neckline—and, more critically, the $0,000013 resistance zone—analysts project a potential 22% nosedive. Such a move would see the meme coin testing the $0,000009 mark. This bearish outlook would only be invalidated if PEPE manages to close a daily candle convincingly above $0,000013, a signal that buyer strength has returned to flip resistance into support.
Market Sentiment and On-Chain Indicators Point to Caution
Despite a slight uptick in trading volume by 4,5% in the last 24 hours, suggesting increased participation, the Chaikin Money Flow (CMF) currently sits at a modest 0,02. While this indicates some minor accumulation, it falls short of the robust buying pressure typically required to catalyze a bullish reversal.
On-chain data further reinforces a cautious sentiment. Over the past 24 hours, exchanges have recorded a net inflow of $1.920.000 in PEPE. This movement of tokens onto exchanges is often interpreted as holders preparing to sell, adding to potential selling pressure.
Source: TradingView
Derivatives Market Leans Bearish
The sentiment within the derivatives market echoes the bearish outlook. Data from CoinGlass reveals a clear imbalance: short positions (bets on price decline) total $10.850.000 at an average price of $0,00001248, almost double the $5.920.000 in long positions (bets on price increase) at $0,00001152. This significant tilt towards shorts indicates a strong market expectation for further price depreciation in the near term.
Expert Perspective on PEPE’s Immediate Future
While the technical and on-chain indicators lean heavily towards a bearish outcome, some experts offer a nuanced view. Crypto analyst VegetaCrypto1, for instance, suggested on X that PEPE “should sweep tomorrow or day after” before a potential recovery. This could imply a “fakeout” or a liquidity grab before a bounce, but the prevailing data strongly suggests a downward trajectory in the immediate future.
Conclusion: A Pivotal Moment for PEPE
PEPE finds itself at a critical juncture. With a classic bearish pattern confirmed by on-chain metrics and a derivatives market leaning heavily towards downside bets, the path of least resistance appears to be downwards. Investors and traders will be keenly watching the $0,000013 level; a failure to decisively break above it could indeed usher in a significant correction for the popular meme coin.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Always conduct thorough research before making investment decisions.
