PEPE Price Bearishness Set to Continue As Risk Aversion Rules
- Summary:
- The momentum and sentiment on PEPE price signals that the downward momentum is here for a while. How low can it go?
Meme coin PEPE continued to experience a slump, with its returns at -48% year-to-date. PEPE price was at $0.0000102 at the time of writing, down by -6.7% on the daily chart.
The broader cryptocurrency market has been under strong downward pressure in the last week amid concerns over the impact of trade tariff wars on the global economy. That has seen investors ease their exposure to high-risk assets like cryptocurrencies.
Why PEPE Price Decline Will Likely Continue
Meme coins’ lack of utility makes them susceptible to risk aversion in the markets in times such as now. It has been a rough ride for meme coins in the last seven days, with the top coins such as DOGE, SHIB and FLOKI losing between 17%-24% during that period.
PEPE price trades below 20,50, 100 and 200 Exponential Moving Average (EMA) levels. In addition, the 20-EMA has crossed below the 50-EMA, adding support to the bearish outlook of the coin.
Furthermore, according to crypto data aggregation site, IntoTheBlock, PEPE price has a correlation coefficient of -0.31 against Bitcoin. A negative correlation coefficient implies that Bitcoin’s recovery may not necessarily trigger an upward shift by PEPEUSD.
Also, PEPE is majority owned by whales, and its recovery will likely depend on whale appetite for high-risk assets. However, such investors are likely waiting for signals from the equities market to increase their exposure to cryptos.
PEPE Price Prediction
The momentum on PEPE price calls for more downside, with the pivot at $0.0000106 as seen on the chart below. With the sellers in control, the meme token will likely move to the first support at $0.0000095. Breaking below that level will strengthen the downward momentum and potentially test $0.0000080.
Conversely, the momentum will favour the upside if the price action breaks above $0.0000106. That will likely meet the first resistance at $0.0000120, above which the downward momentum will be invalid. Also, such momentum could potentially send the price higher and test the second resistance at $0.0000133.
