An analyst on social media platform X has highlighted an important help degree for PEPE, because the meme coin faces a big drawdown from its current highs. Based on historic value tendencies, the analyst famous that PEPE has constantly skilled a mean drawdown of roughly 64% following every native peak. The ongoing correction has positioned PEPE round this retracement degree, and the meme coin is now in a precarious place the place its means to take care of help might decide whether or not it stabilizes and resumes an upward trajectory or falls into deeper decline.
PEPE’s Historical Drawdowns And The 64% Correction Pattern
Price knowledge from CoinGecko reveals that PEPE, the favored meme coin, is currently down by approximately 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 as a result of the broader decline throughout the crypto market.
A crypto analyst on social media platform X highlighted a recurring pattern in PEPE’s value historical past, noting that the meme coin tends to expertise a mean drawdown of round 64% following every native peak earlier than stabilizing and rebounding. This pattern has repeated a number of instances on the weekly candlestick timeframe, reinforcing a constant cycle of sharp corrections and subsequent recoveries.
The first 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 state of affairs unfolded between May and July 2024, when the meme coin suffered a 66% decline earlier than regaining bullish momentum, finally pushing its value to its present all-time excessive in December.
As famous by the analyst, these intervals of declines after reaching a brand new excessive have all the time been propped up by the 50 EMA indicator. At the time of writing, PEPE is now buying and selling round this EMA, and its means to take care of its place above it’s essential for avoiding a deeper decline. If the worth holds at this degree, it might mark the beginning of a recovery, whereas a robust breakdown under it would set off additional promoting strain.
What’s Next For Price?
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 danger of extending the meme coin’s breakdown under the 50-week exponential transferring common (EMA). The newest weekly candlestick has already proven indicators of slipping under this crucial help degree, and the prevailing bearish momentum might additional solidify this transfer if promoting strain persists throughout the market.
At the time of writing, PEPE is buying and selling at $0.000009279, whereas the 50-week EMA sits across the $0.000011 mark. This signifies that the meme coin has already fallen roughly 15% under this help degree. However, the state of affairs isn’t completely unhealthy. Given the heightened volatility over the previous 24 hours, a fast market restoration might see the meme coin rebounding alongside broader crypto property and return to retesting resistance at $0.00001313.
Featured picture from Medium, chart from Tradingview.com
