An analyst on social media platform X has highlighted an important help degree for PEPE, because the meme coin faces a major drawdown from its current highs. Based mostly on historic worth traits, the analyst famous that PEPE has constantly skilled a median drawdown of roughly 64% following every native peak. The continued correction has positioned PEPE round this retracement degree, and the meme coin is now in a precarious place the place its capability to take care of help may decide whether or not it stabilizes and resumes an upward trajectory or falls into deeper decline.
PEPE’s Historic Drawdowns And The 64% Correction Sample
Worth information from CoinGecko reveals that PEPE, the favored meme coin, is at the moment down by roughly 67.3% from its all-time excessive of $0.00002803, which it reached on December 9, 2024. Notably, the current downturn intensified with a pointy 25.3% drop up to now 24 hours because of the broader decline throughout the crypto market.
A crypto analyst on social media platform X highlighted a recurring sample in PEPE’s worth historical past, noting that the meme coin tends to expertise a median drawdown of round 64% following every native peak earlier than stabilizing and rebounding. This pattern has repeated a number of occasions on the weekly candlestick timeframe, reinforcing a constant cycle of sharp corrections and subsequent recoveries.
The primary main retracement occurred between March and April 2024, when the asset declined by 63.75% after reaching an all-time excessive of $0.000010003. This correction, whereas extreme, ultimately led to a robust rebound, permitting PEPE to set new highs. An analogous situation unfolded between Might and July 2024, when the meme coin suffered a 66% decline earlier than regaining bullish momentum, in the end pushing its worth to its present all-time excessive in December.
As famous by the analyst, these durations of declines after reaching a brand new excessive have at all times been propped up by the 50 EMA indicator. On the time of writing, PEPE is now buying and selling round this EMA, and its capability to take care of its place above it’s essential for avoiding a deeper decline. If the value holds at this degree, it may mark the start of a restoration, whereas a robust breakdown beneath it’d set off additional promoting stress.
What’s Subsequent For Worth?
The general cryptocurrency market cap has declined by roughly 10% up to now 24 hours, contributing to a bearish sentiment surrounding PEPE. This widespread market downturn will increase the danger of extending the meme coin’s breakdown beneath the 50-week exponential shifting common (EMA). The most recent weekly candlestick has already proven indicators of slipping beneath this important help degree, and the prevailing bearish momentum may additional solidify this transfer if promoting stress persists throughout the market.
On the time of writing, PEPE is buying and selling at $0.000009279, whereas the 50-week EMA sits across the $0.000011 mark. This means that the meme coin has already fallen roughly 15% beneath this help degree. Nonetheless, the state of affairs will not be fully unhealthy. Given the heightened volatility over the previous 24 hours, a fast market restoration may see the meme coin rebounding alongside broader crypto belongings and return to retesting resistance at $0.00001313.
Featured picture from Medium, chart from Tradingview.com
