Pepe Coin Price Risks Losing Major Support As Key Indicator Drops to Weekly Low

Pepe Coin Price Faces Challenges as Crucial Support Level Nears

The price of Pepe Coin (PEPE) faces significant headwinds as it approaches a critical support level. A key technical indicator has plunged to its lowest point in a week, sparking concerns about PEPE's ability to maintain its current price levels.

This decline comes amidst a broader market downturn, with Bitcoin recently losing its crucial $60,000 support. PEPE has followed suit, dropping 10.4% in the past 24 hours.

Why is Pepe Coin Price Falling?

The price decline mirrors a broader market trend triggered by Bitcoin falling below its $60,000 support level. BTC lost 3.4% between August 26th and 27th, marking a shift in the market's short-term outlook.

Despite the downtrend, large investors such as BlackRock continue to show confidence in the market's long-term potential, evidenced by their recent purchase of 3,500 BTC.

On-Chain Metrics Provide Glimmers of Hope

On-chain metrics indicate that PEPE may have room for recovery. The daily profit ratio has declined to 0.34, its lowest since August 23rd, suggesting that most PEPE transactions are resulting in losses.

However, a sharp spike in trading activity on August 28th, following the price decline, suggests that whales and retail traders may have taken advantage of the dip to accumulate tokens.

Additionally, the 30-day and 365-day Market Value to Realized Value (MVRV) ratio has fallen into the oversold zone, indicating that PEPE may be undervalued and due for a rebound.

Technical Analysis

The next major support level for PEPE is around $0.00000700. If it fails to hold above that level, the meme coin could drop lower to $0.00000600.

Should PEPE bounce from the $0.00000700 support, it may retest the upper boundary of its current range at $0.00000900. A break above this resistance could lead to a 43% surge in price to $0.00001280.