Frog themed memecoin project PEPPE, It has been trading within a falling wedge formation since May 27. Currently priced at $0.0000077, the token’s value has fallen by 52% during this period. PEPE’s price could fall further as it looks set to break below the lower line of the falling wedge formation, signaling a continuation of the downtrend.
What’s Happening on the Pepe Front?
A falling wedge pattern is formed when the price of an asset moves between two downward sloping trend lines. The upper trend line acts as resistance while the lower trend line acts as support. Despite the downtrend that is usually within the wedge, this pattern is considered bullish because the price usually breaks above the upper trend line upon completion, leading to an upward move. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
But PEPE may be an exception. Since August 25 memecoin its price has fallen 15% in a downtrend and is approaching the lower line of the falling wedge pattern. When an asset’s price falls below the lower trendline of a falling wedge, it invalidates the bullish trend typically associated with this pattern and indicates that the downtrend may continue.
PEPE’s Its technical setup supports this possibility. The altcoin has dipped below major moving averages, trading below both its 20-day exponential moving average (EMA) and its 50-day simple moving average (SMA). The 20-day EMA reflects the average price of an asset over the last 20 trading days, while the 50-day SMA tracks the average closing price over the last 50 days.
Additionally, PEPE’s Relative Strength Index (RSI) remains below its neutral line, a position it has held for most of the past month. The RSI measures whether an asset is overbought or oversold. PEPE’s RSI, which is down at 43.13 at the time of writing, suggests low buying activity among market participants.
PEPE Graphic Analysis
The bearish sentiment surrounding PEPE is further evidenced by its negatively weighted sentiment, which currently stands at -0.76. A weighted sentiment reading below zero indicates that the overall online conversation around the asset is predominantly negative. This negativity typically signals a continued decline in the asset’s price.
If PEPE bulls fail to defend the falling wedge bottom line, the memecoin project’s price could drop to the August 5 low of $0.0000059, representing a 28% drop from its current value. However, if the current trend reverses and PEPE continues its uptrend, its price could rise to $0.0000086.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
