Don’t Bet on PEPE! Top Analyst Warns of Potential Price Drop

Meme markets surged with excitement as Keith Gill, famously known as Roaring Kitty, made a comeback, reminiscent of his pivotal role in the January 2021 GameStop short squeeze.

In his latest enigmatic post, Gill shared a meme portraying a focused gamer, sparking speculation about a potential surge in the meme coin arena.

According to data from CryptoSlate’s top gainers list, relatively obscure meme coins like MOG Coin, Popcat, and Book of Meme witnessed notable upswings following Gill’s post. Meanwhile, established meme coins like Dogecoin, Shiba Inu, and Floki also saw substantial upticks during this period.

Crypto analyst Ali Martinez cautions that not all altcoins will reap equal benefits from the market frenzy. Martinez singles out PEPE as a cryptocurrency potentially poised for a price retracement.

Currently under bearish pressure, Pepe is showing signs of a sell-off around its recent high of $0.0000116. The coin’s attempt to breach below the EMA20 trend line signals a possible shift in the prevailing trend.

A decisive dip below the critical support range of $0.00001 to $0.000008 could confirm a bearish pattern, potentially pushing the pair toward a robust support level at $0.0000055.

Indicators Pointing South

Delving deeper into the $PEPE token’s performance on a 3-day chart, Martinez identifies significant indicators hinting at a potential downturn. Notably, the TD Sequential indicator recently flashed two noteworthy sell signals: an aggressive 13 and a green nine candle, suggesting a probable reversal in price momentum.

Additionally, Martinez highlights a bearish divergence between $PEPE’s price action and the Relative Strength Index (RSI), with the RSI’s sharp decline toward the midline indicating prevailing bearish sentiment.

Understanding Future Prospects

Despite these bearish signals, buyers are striving to maintain Pepe’s price above the 20-day Exponential Moving Average (EMA) at $0.00001. A successful defense of this level could prompt a rise toward the recent high of $0.0000116. 

As of now, Pepe Coin is trading at $0.0000102, reflecting a decline of over 4.9% in the last 24 hours.

Think PEPE can defy the odds?


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