- Trendline Rejection: Price fell 30%, dropping below the 200-day EMA at $0.000014.
- Bearish RSI and MACD: RSI at 31; MACD’s red bars signal sell momentum.
- Market Sentiment: Long-to-short ratio at 0.72, lowest in a month, amplifies pressure.
Pepe (PEPE) has been on a downward spiral, currently trading near $0.000012, marking a steep drop of nearly 10% as of Monday. This follows a 12% tumble last week, leaving investors nervous. Adding fuel to the fire, the coin’s long-to-short ratio sits below one, signaling that more traders are betting on its decline. Technical indicators? Let’s just say they’re not painting a pretty picture, with some pointing toward a potential 20% nosedive in the near term.
Bears Set Their Sights on a 20% Slide
PEPE’s price hit a wall at a descending trendline, one formed by connecting multiple highs dating back to early December. On January 18, it faced rejection there and nosedived over 30% by Sunday, even dipping below its 200-day Exponential Moving Average (EMA) at $0.000014. By Monday, the coin clung to $0.000012, showing no signs of recovery.
If PEPE fails to reclaim $0.000013 and closes below this level on the daily chart, the fallout could be brutal—potentially dropping another 20% to test the November 8 low of $0.000010.
Momentum Indicators: Bleak, But Not Quite Oversold
Taking a closer look at the Relative Strength Index (RSI), it reads 31 on the daily timeframe, clearly signaling bearish momentum. Yet, it hasn’t dipped into oversold territory, leaving room for further downside. It’s like the coin is teetering on the edge, and the bears seem ready to push it over.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator isn’t doing any favors either. A bearish crossover has emerged, flashing a clear sell signal. The increasing red histogram bars below the zero line suggest momentum isn’t just negative—it’s accelerating.
Sentiment Turns Ugly
One of the biggest red flags comes from Coinglass. Its long-to-short ratio for PEPE sits at 0.72, the lowest it’s been in over a month. In simple terms? More traders are piling onto short positions, essentially betting the frog-themed memecoin will continue to slide.
With technicals screaming bearish and sentiment souring further, the road ahead for PEPE looks rocky. A 20% crash isn’t off the table—at least not if the current trends hold. For traders and investors, it’s a waiting game: either the meme coin pulls off a miraculous bounce, or it continues its slow descent into the red.
