During the Tuesday U.S. trading hours, the crypto market showcased a bearish outlook, with Bitcoin price teasing a breakdown below $95,000. The selling pressure interfered with the recovery potential for several major altcoins, including Pepe coin. Thus, the frog-themed memecoin is currently at a critical crossroads, which could drive a potential rally or lead to a major downfall.
Key Highlights:
- An ascending trendline shows the long-term uptrend trajectory in the Pepe coin
- A potential death crossover between the 50-and-200-day exponential moving average could accelerate the market selling pressure and drive a prolonged downfall.
- PEPE futures OI fell from $555.4 million to $250 million, marking a 55% decline in recent weeks.
PEPE Futures See Massive OI Reduction
According to CoinGlass data, PEPE futures open interest (OI) has seen a sharp decline from $555.4 million to $250 million, marking a 55% decrease over the past few weeks.
A significant reduction in OI suggests that traders are exiting leveraged positions, either by closing trades voluntarily or through liquidations. This reflects lower speculative activity and possible market cooling.
PEPE Futures Open Interest | Coinglass
PEPE Price Poised for Major Reversal
Over the last three weeks, the Pepe coin price has witnessed a sharp decline from $0.000021 to $0.00000962, registering a loss of 59%. Consecutively, the asset market cap plunged to $4 Billion.
The falling price breached below the key daily EMAs (20, 50, 100, and 200) accentuates the rising bearish sentiment in the market.
However, the declining trend has recently shifted its price trajectory to sideways at $0.00000875, as a long-coming support trendline comes for assistance. Since April 2024, the ascending trendline has provided buyers with suitable pullback support to revive their exhausted bullish momentum,
The ADX indicator surged to a 34% high, indicating the sellers have already carried an over-extended downfall, which would soon require a short pullback.
Pepe/ USDT -1d chart
Thus, the Pepe coin price shows a higher potential for a bullish reversal and reclaim position above $0.00001. If history repeats, the buyers could challenge the downsloping trendline of the daily chart and attempt to regain $0.000027.
Conversely, if the memecoin breaks below the support trendline, the bearish momentum will accelerate the drive to a 30% price fall to hit $0.00000630.
