Pepe Crashes Nearly 26%: Further Downfall Or A Recovery Ahead?

Pepe Crashes Nearly 26%: Further Downfall or a Forthcoming Recovery?

Market Overview

The broader cryptocurrency market is experiencing a bearish downturn, leading to lower prices and eroding recent gains. This bearish sentiment has impacted major cryptocurrencies, including .

Pepe's Price Drop

, the third-largest memecoin, has suffered a significant drop of approximately 26% over the past five sessions. This weakness has triggered a sell-off in meme coins, which had performed exceptionally well in preceding months.

Uncertainty Among Investors

The recent sell-off has instilled doubt among investors. It is crucial to analyze 's price trajectory to determine whether the current trend will persist or reverse.

Increasing User Engagement

distinguishes itself in the meme coin market by utilizing the heritage of Pepe the Frog, a character with a rich history. The project's dedication to honoring this iconic figure sets it apart, enhancing its appeal within the cryptocurrency community.

Despite the price decline, analysts have observed a positive development in on-chain metrics: daily active addresses. The 24-hour and 7-day active addresses have exhibited an upward trajectory in recent sessions.

Technical Analysis

The daily chart indicates a sharp sell-off in recent sessions. is on a five-day losing streak, shedding nearly 26%. Furthermore, trading volume has contracted by 10% to 792.8 million.

Technically, has fallen below the 20 and 50-day EMAs, suggesting a weak short-term outlook. However, the long-term trend remains supportive for buyers, as the price is still above the 200-day EMA by 3%.

Support and Resistance Levels

Key support levels include the 200-day EMA and $0.0000084. If bulls establish their position near this support zone, may rebound and recover its losses.

Conversely, if selling pressure persists and the price falls below $0.0000084, it could lead to further losses.

Outlook

The recent market downturn has triggered a sell-off in . However, increasing user engagement suggests that the community remains engaged.

Bulls need to hold the 200-day EMA and $0.0000084 support levels to facilitate a rebound. Failure to do so could lead to further declines.