Pepe coin price could be at risk as a concerning pattern forms

Pepe Coin, currently the third-largest meme coin, has been experiencing significant price declines, mirroring the broader downturn in the cryptocurrency market. As of the latest data, Pepe Coin’s price dropped to $0.0000156, marking its lowest level since December 20. This decline aligns with a broader risk-off sentiment sweeping through the financial markets, with rising bond yields, falling American equities, and a decrease in Bitcoin’s price.

The global financial situation, with the Dow Jones, Nasdaq 100, and S&P 500 all experiencing significant losses, is contributing to the bearish trend. Bitcoin’s price fell to $90,000, and the crypto market capitalization dropped by 4% to $3.19 trillion. This downturn is driven by growing fears that the U.S. Federal Reserve may maintain its hawkish stance, especially as the U.S. economy remains strong with unemployment dropping to 4.1% in December, signaling the possibility of prolonged higher interest rates.

For Pepe Coin and other cryptocurrencies, the upcoming release of the Consumer Price Index (CPI) report on Wednesday will be crucial. If inflation is shown to have risen, it could reinforce the Fed’s hawkish policies, exacerbating the bearish sentiment in the market.

From a technical standpoint, Pepe Coin’s price has formed a potentially dangerous pattern. After peaking at $0.00002845 on December 9, it has since fallen below its 50-day and 100-day moving averages, indicating that bearish forces are gaining momentum. Additionally, the coin has formed a head-and-shoulders pattern, a classic reversal signal that suggests further downside potential. The Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) are also showing bearish divergence, which supports the likelihood of additional price drops.

A critical support level for Pepe Coin is the 50% Fibonacci retracement at $0.00001465. A break below this level could open the door to further declines, with the psychological support at $0.000010 being a potential target.

However, on a more positive note, Pepe Coin’s futures open interest has remained stable at $438 million as of January 13. The open interest figure suggests that there is still substantial trader interest in Pepe Coin, which could provide some support in the short term. Despite the technical risks, the ongoing engagement from traders might help cushion the impact of broader market pressures.