Pepe (PEPE) Price May Drop Further In The Near Future, Here’s Why?
The Pepe (PEPE) price is currently trading inside a bullish pattern but has broken down below a significant support area. It is expected to continue decreasing in the short term before making a breakout attempt.
Descending channel
The Pepe (PEPE) price has been decreasing inside a descending parallel channel since reaching a local high of $0.0000019 on July 14th. This is a bullish pattern often leading to breakouts in most cases.
However, this action caused the price to break down below the support area of $0.00000083 and reach a low of $0.00000060 on September 17th. This indicates the continuation of the downtrend.
In fact, the subsequent recovery was halted by the confluence point of resistance levels at $0.00000083, including the channel’s resistance and the previous support area.
The daily RSI indicator has also dropped back below 50 during this process. Therefore, the bearis might still be in control of the market, and the PEPE price could further decrease in the near future.
The potential target for this decline is the recent low at $0.00000060. Breaking this level could push the price down to the channel’s support line at $0.00000032.
Short-term outlook
The 4-hour chart supports the continuation of the downtrend as the PEPE price broke down below the $0.00000073 area on October 3rd, where was expected to provide support.
Subsequently, the price confirmed this area as resistance, most recently today (red arrow).
The RSI indicator has also been rejected by the 50 level today and is sloping down, indicating the bears is in control of the market.
Therefore, the price might decline towards the nearest support area at $0.00000066 in the coming days.
Conclusion
The most likely scenario suggests that the Pepe (PEPE) price will decrease further in the near future. The nearest target is $0.00000066, and potentially lower to $0.00000060.
Breaking down below $0.00000060 could trigger a rapid decline towards the channel’s support line at $0.00000032.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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