After experiencing a decline of over 12% last week, Pepe ($PEPE ) saw its price slide further on Monday, leaving traders cautious and markets uncertain.
Current data reveals that the long-to-short ratio for $PEPE has fallen below 1, indicating that a majority of traders are expecting further downside for the meme coin 📉. Technical indicators, too, suggest that bearish momentum is gaining strength, signaling the possibility of additional corrections.
$PEPE a Potential 20% Downside 🚨
Pepe is currently trading around $0.000012, having dropped approximately 10% on Monday alone. On January 18, the price rejected a declining trendline originating from December’s highs, leading to a steep decline of nearly 30% over the following days. This dip also pushed low its 200-day Exponential Moving Average (EMA) of $0.000014—a significant bearish signal.
Should the coin continue this corrective trajectory and close below $0.000013, there’s a high probability it could drop an additional 20% to retest the November 8 low of $0.000010.
Technical Indicators Point to Weakness
Relative Strength Index (RSI): The RSI on the daily chart has dropped to 31 and continues to trend lower, reflecting strong bearish momentum. With the RSI not yet in oversold territory, further declines are possible.
MACD (Moving Average Convergence Divergence): A bearish crossover has appeared on the MACD, indicating a sell signal. The expanding red histogram bars below the zero line confirm mounting selling pressure.
Market sentiment remains gloomy, as evidenced by Coinglass data, with $PEPE’s long-to-short ratio sitting at 0.72—the lowest in a month. This indicates that most traders are positioning for continued downside in the frog-inspired meme coin.
Outlook
While under significant selling pressure, market cycles often present opportunities for disciplined traders. Watching key support levels and monitoring trend reversals can provide better entry points for those seeking long-term value. For now, caution remains critical as gates this challenging phase.
