The PEPE price is facing a potential crisis as it struggles to maintain its upward momentum. The failure to sustain this positive trend has sparked a resurgence of bearish momentum, putting the price at risk of further decline. Without intervention from bullish investors, the PEPE price may continue to slide downwards. Analyst Alan Santana has warned that if bears succeed in maintaining control, the price of PEPE could plummet to levels not seen since early 2024.
PEPE At Risk Of Further Decline
Noted crypto analyst Alan Santana has issued a cautionary signal on TradingView regarding a potential decline in the PEPE price. The meme coin experienced a retracement from its recent gains, triggering bearish signals.
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Santana points to several indicators of bearish sentiment, including rising bearish volume and a break below the MA200 on the PEPE chart. The correction in price has pushed PEPE back below $0.000009, indicating vulnerability in the current market conditions.
The drop in price has only reached the 0.618 Fibonacci retracement level according to Santana, leaving the 0.786 Fibonacci retracement level as a potential target. Despite the risk associated with this level, Santana believes that the long-term bullish structure of PEPE remains intact.
However, a break below the 0.786 Fibonacci retracement level could spell disaster for the meme coin, potentially leading to a significant crash and new monthly lows. The looming threat of a bearish move adds to the uncertainty surrounding PEPE’s future price action.
Targets For The Crash
Should the PEPE price test and break below the 0.786 Fibonacci retracement level, Santana predicts a substantial crash in price. Two support levels have been identified, with the first around $0.00007, representing a more than 25% decline from the current level. If this support fails, the price could plummet towards the next support level slightly above $0.000004.
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A potential 50% drop from the current level is projected if PEPE falls to the second support level. However, if the price manages to hold steady, it could retrace back above $0.00001. The future price trajectory of PEPE remains uncertain, hinging on the ability of bulls to intervene and prevent further decline.
Featured image created with Dall.E, chart from Tradingview.com
