PEPE Price Faces 20% Crash Risk as Bearish Momentum Builds

The PEPE price has experienced a sudden shift from bullish to bearish, marked by a negative Change of Character (CHoCH) following its breakout from an Ascending Triangle pattern. This structural shift indicates that buyers are losing momentum, pushing the price into a bearish zone.

According to pseudonymous TradingView analyst ‘MyCryptoParadise’, bears could take control of PEPE’s price as it approaches a crucial resistance zone at $0.000008. The analyst suggests that if the meme coin fails to break above this resistance, it could result in a 20% crash to lower support levels.

The first minor support level is at $0.0000065. If bearish momentum persists, PEPE could drop further, trapping late buyers and extending its correction phase. A deeper support zone is identified at $0.0000055, serving as a crucial defense against a stronger price breakdown.

A major factor supporting PEPE’s projected price crash is the alignment of its key resistance level with several bearish elements. The $0.000008 resistance coincides with a 200 Exponential Moving Average (EMA), which acts as a dynamic resistance. The 200 EMA is often a reliable indicator of long-term trend shifts, and its overlap with the resistance adds strength to the bearish outlook.

The resistance also coincides with a Fair Value Gap (FVG), a region where liquidity has been left untested, suggesting that price could be drawn back to fill this gap. Additionally, PEPE’s critical resistance level intersects with a Fibonacci Golden Zone, a key retracement level where price reversals often occur, further signaling the potential for a downturn.

While ‘MyCryptoParadise’ projects a 20% correction for the PEPE price, which is currently trading at $0.00000698, he also shared a possible bullish scenario. If PEPE manages to close a candle above the $0.000008 resistance, the bearish thesis could be invalidated. In this case, the market should anticipate a continuation of the uptrend, with the next price target potentially reaching $0.0000085 and beyond. However, for bulls to break through this resistance level, strong volume and momentum are required. Given that Pepe’s price is still in the red, this bullish scenario seems less likely for now.