- PEPE falls below $0.000015, breaching the 61.8% Fibonacci retracement level.
- RSI at 38 and a bearish MACD crossover signal strong downside momentum.
- Daily Active Addresses plummet from 28,131 to 2,606, reflecting declining blockchain demand.
Pepe (PEPE), the meme coin with the frog theme, isn’t having a good week. Trading below $0.000015 as of Tuesday, PEPE has plummeted more than 22% since Saturday, leaving traders scratching their heads. The technical charts? They’re not painting a pretty picture. Momentum indicators look weak, and even the coin’s on-chain metrics scream bearish vibes. It’s not just a dip—it’s a warning sign.
Double-Digit Correction Looms
PEPE hit a wall near a descending trendline that’s been weighing it down since early December. After that rejection on Saturday, the coin tumbled 22.86% by Monday, falling below its 200-day Exponential Moving Average (EMA) at $0.000017. And as of Tuesday, it’s even breached the 61.8% Fibonacci retracement level at $0.000015 (drawn from the November low of $0.0000077 to December’s high of $0.000028).
If PEPE can’t hold above $0.000015 in daily closes, things might get worse. A 14% drop from current levels could push it to $0.000013, a critical support zone.
The Relative Strength Index (RSI) doesn’t offer much hope, either. Sitting at 38, it’s well below the neutral 50 mark and trending downward—a classic signal of bearish momentum. Add to that the Moving Average Convergence Divergence (MACD) flashing a sell signal after a bearish crossover on Sunday, and it’s clear: the bears are firmly in control.
Bearish Sentiment: Traders Turn Their Backs
Looking at Coinglass’s long-to-short ratio, it’s not hard to see why traders are pessimistic. The ratio sits at 0.80, its lowest in over a month. When the number is under one, it means more people are betting on the price falling than rising—a troubling sign for any coin.
On-chain data paints an even grimmer picture. Santiment’s Daily Active Addresses index, which tracks how many wallets are active on the network, is plummeting. In mid-November, the metric showed 28,131 addresses in use. Fast forward to last week, and that number has nosedived to 2,606. For a coin like PEPE, built on hype and community, this kind of drop in activity could spell trouble. Lower demand for blockchain usage often translates to lower prices.
What’s Next for Pepe?
It’s clear that PEPE is skating on thin ice. Technical indicators suggest more downside, while on-chain data highlights waning interest. If the coin can’t reclaim $0.000015, a deeper pullback to $0.000013 seems inevitable. For now, the bears are calling the shots, and unless the bulls muster some serious strength, PEPE might be in for a prolonged slump.
