PEPE Drops After Breaking Down From Bullish Pattern - When Will It Bounce Back?

PEPE has seen a price decline recently falling 4.43% in the last 24 hours and 7.5% in the last 7 days. As of writing PEPE is trading at $0.00001144 and with a market cap of $4.8 billion. Despite the drop, PEPE has gained 30% in the last 24 hours in its trading volume currently at $694 million

PEPE had been in an uptrend, forming an ascending parallel channel pattern of higher lows and higher highs. However it has now broken down from this pattern after hitting an all-time high of $0.00001725 on May 27th. Since then PEPE has dropped over 35% from the high. 

The selling pressure intensified as PEPE price drop below the ascending trendline support or the ascending parallel channel that had been in place since April 13th. After retesting this broken support as shown by the 2 last consecutive daily candles on the chart,  PEPE has continued declining toward the $0.00001100  support level.

Looking at the technical indicators the daily Relative Strength Index (RSI) is currently at 42 showing strengthening bearish momentum as the sellers push prices lower following the support breakdown. The Moving Average Convergence Divergence (MACD) indicator is also bearish with the MACD line trading below the signal line.

The PEPE futures open interest and long short ratios for PEPE have both decreased as well. This signals that traders are reducing their exposure amid the current bearish trend. The declining long/short ratio specifically reflects more traders taking short positions further adding to the bearish momentum.

Despite the current short-term drop some analysts remain optimistic about PEPE long-term market speculation. One crypto analyst on X claims that PEPE is "getting ready for the next big run" and is encouraging investors to buy PEPE before it potentially gets traded on major exchanges like Coinbase.

According to Changelly PEPE price is forecasted to fluctuate between $0.00000396 on the low end to $0.0000116 on the high end throughout 2024 and with an expected average trading price of $0.0000192.

For the month of June 2024 specifically PEPE price prediction has the crypto ranging from $0.0000119 to $0.0000183 and with an average expected price of $0.0000151.

While these are just estimates, they suggest PEPE could potentially regain its upward trajectory later this year after the current bearish cycle runs its course.