Pepe (PEPE) braces for 28% drop
Pepe (PEPE) has been trading within a falling wedge pattern since May 27. Currently priced at $0.0000077, its value has dropped by 52% during this period.
PEPE’s price could decline further, as it appears poised to break below the lower line of its falling wedge, which would signal a continuation of the downtrend.
A falling wedge pattern occurs when an asset’s price moves between two downward-sloping trend lines. The upper trend line serves as resistance, while the lower trend line acts as support.
Typically, despite the downtrend within the wedge, this pattern is considered bullish because the price often breaks out above the upper trend line upon completion, leading to an upward movement.
However, PEPE may be an exception. Since August 25, the meme coin’s price has been on a downtrend, dropping by 15% and pushing it closer to the lower line of the falling wedge.
\When an asset’s price breaks below the lower trendline of a falling wedge, it invalidates the bullish projection typically associated with this pattern and suggests that the downtrend may continue.
PEPE’s technical setup supports this possibility. The altcoin has fallen below key moving averages, trading beneath both its 20-day exponential moving average (EMA) and its 50-day simple moving average (SMA).
If PEPE bulls fail to defend the lower line of the falling wedge, the meme coin’s price could decline to its August 5 low of $0.0000059, representing a 28% drop from its current value.
However, if the current trend reverses and PEPE resumes its uptrend, its price could rise to $0.0000086.
PEPE’s price could decline further, as it appears poised to break below the lower line of its falling wedge, which would signal a continuation of the downtrend.
A falling wedge pattern occurs when an asset’s price moves between two downward-sloping trend lines. The upper trend line serves as resistance, while the lower trend line acts as support.
Typically, despite the downtrend within the wedge, this pattern is considered bullish because the price often breaks out above the upper trend line upon completion, leading to an upward movement.
However, PEPE may be an exception. Since August 25, the meme coin’s price has been on a downtrend, dropping by 15% and pushing it closer to the lower line of the falling wedge.
\When an asset’s price breaks below the lower trendline of a falling wedge, it invalidates the bullish projection typically associated with this pattern and suggests that the downtrend may continue.
PEPE’s technical setup supports this possibility. The altcoin has fallen below key moving averages, trading beneath both its 20-day exponential moving average (EMA) and its 50-day simple moving average (SMA).
If PEPE bulls fail to defend the lower line of the falling wedge, the meme coin’s price could decline to its August 5 low of $0.0000059, representing a 28% drop from its current value.
However, if the current trend reverses and PEPE resumes its uptrend, its price could rise to $0.0000086.
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