An analyst on social media platform X has highlighted an important help stage for PEPE, because the meme coin faces a major drawdown from its current highs. Based mostly on historic value traits, the analyst famous that PEPE has constantly skilled a median drawdown of roughly 64% following every native peak. The continuing correction has positioned PEPE round this retracement stage, and the meme coin is now in a precarious place the place its potential to keep up help might 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 knowledge 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 prior to now 24 hours on account of the broader decline throughout the crypto market.
A crypto analyst on social media platform X highlighted a recurring sample in PEPE’s value 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, finally led to a robust rebound, permitting PEPE to set new highs. The same state of affairs unfolded between Might and July 2024, when the meme coin suffered a 66% decline earlier than regaining bullish momentum, in the end pushing its value to its present all-time excessive in December.
As famous by the analyst, these durations of declines after reaching a brand new excessive have all the time been propped up by the 50 EMA indicator. On the time of writing, PEPE is now buying and selling round this EMA, and its potential to keep up its place above it’s essential for avoiding a deeper decline. If the value holds at this stage, it might mark the start of a restoration, whereas a robust breakdown beneath it’d set off additional promoting strain.
What’s Subsequent For Worth?
The general cryptocurrency market cap has declined by roughly 10% prior to now 24 hours, contributing to a bearish sentiment surrounding PEPE. This widespread market downturn will increase the chance of extending the meme coin’s breakdown beneath the 50-week exponential transferring common (EMA). The most recent weekly candlestick has already proven indicators of slipping beneath this essential help stage, and the prevailing bearish momentum might additional solidify this transfer if promoting strain 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 stage. Nonetheless, the scenario isn’t totally dangerous. Given the heightened volatility over the previous 24 hours, a fast market restoration might 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
