Bitcoin price continues to fluctuate around $26,000 and altcoin investors are keeping an eye on the supports. If BTC experiences further losses, we may see accelerated selling in altcoins. On the other hand, there are also coins that are experiencing extra negative divergence. One of them is PEPE Coin.
Since mid-August, crypto investors have been feeling the increasing selling pressure. This has led to extended corrections in many altcoins, including PEPE, a frog-themed memecoin. The declining prices threaten to break another key support level, indicating that PEPE’s price could witness further decline.
After reaching $0.00000147, PEPE price experienced a dramatic turnaround, dropping by 29%. This turnaround formed a formation often referred to as a “V-top” reversal formation. The increased volume accompanying this drop indicates strong selling pressure that plays a significant role in pulling the price down.
On August 19, PEPE price formed a “Morning Star” candlestick formation, sparking hope for a potential recovery. However, the lack of significant recovery in price movement after the candle formation dampened the excitement of those expecting a rise.
At the time of writing, PEPE Coin price is $0.00000108. The persistent selling pressure, causing a 3.5% daily loss for the altcoin token, continues to be a concern. With the price trading near the $0.00000105 support level, there is a risk of another break. Such a break could result in a 22% decline. In this scenario, the price target is $0.0000081, indicating that PEPE investors will likely witness the addition of another zero to the price.
Although the downside scenario appears more likely, this memecoin has bounced twice from $0.00000105 in the past month. The alignment with the 78.6% Fibonacci retracement level strengthens the support power of this leg. If the bulls manage to stay above this support in the coming days, the altcoin may make another recovery attempt and target the $0.00000147 peak.
Bollinger Bands and ADX data remind us of the dominance of the downside possibility.