Pepe Drops 3.36% Amid Bearish Signals, Faces Key Resistance
2min read Pepe's latest price was $0.05, down 3.363% in the last 24 hours. This frog-themed cryptocurrency has recently faced a "death cross" on its four-hour chart, which occurs when a short-term moving average crosses below a longer-term moving average, indicating potential bearish momentum in the market. This signal has raised concerns among traders, as Pepe has struggled to gain traction and has been trading beneath its moving averages on both the four-hour and daily charts.
Pepe is currently facing a major test in its ability to break through the moving averages of 50 and 200 on the four-hour and daily charts, which have become a barrier to any significant upward movement. This would require consistent buying pressure from positive market sentiment, major news, or fresh capital inflows into the crypto market. After reaching all-time highs, Pepe declined and entered a range capped on the upside by its moving averages of 50 and 200. For Pepe to break out of this range, it must first overcome the barrier created by the moving averages. Until then, the meme coin might face continued pressure from sellers, especially given the current market uncertainty.
Meme coins, including Pepe, have been among the biggest beneficiaries of the market revival following the reversal of Trump’s tariff war. The return of risk-on sentiment has sparked a wave of dip-buying, with Pepe responding fast and jumping on the daily. Pepe is still down from its pre-tariff war levels, giving it a claim in the “best cryptos to buy now” conversation. Since the tariff war began, risk assets like crypto have become increasingly vulnerable to volatility under heavy market FUD. When crypto bleeds, meme coins often bleed more due to their speculative nature, which has dragged the meme coin market down. However, that same volatility cuts both ways, and today meme coins are outperforming, soaking up fresh retail liquidity.
Pepe's movement signals recovery for the frog-themed meme coin as the global digital asset capitalization climbed after a 90-day pause on the implementation of U.S. trade tariffs. After being in consolidation for so long, the Pepe explosion could lead to a sustained positive performance as bulls reenter the market. The meme coin might surge further to new levels and erase one zero off its price. The token is currently testing a critical resistance zone, and an increase in trading volume, which signals renewed interest from market participants, is a key factor to watch. This might serve as a vital catalyst to pushing the meme coin past the resistance in a push to erase a zero.
Pepe's key resistance and support levels are important to consider. The token's ability to soar past a short-term resistance level largely depends on its ecosystem support amid a dearth of utility. If Pepe gets enough of a push from the bulls, it could eventually erase one zero. However, a pullback could see Pepe crash to a more stable support level for the meme coin. Such a development would see Pepe give up all its gains should its price plummet again. Even with memes like Shiba Inu and Pepe Coin surfacing, ongoing analysis remains on what might be forgotten and is likely to be volatile in the following months. Current sentiments suggest that the hope that these meme tokens are either losing zero or worth growing tenfold appears too optimistic. The sentiment with these tokens is pessimistic. Analyst projections for Pepe’s performance in the upcoming quarter vary, with some forecasts indicating possible gains with Pepe trading between certain values. These projections imply that while Pepe may experience upward momentum, the extent of its growth remains uncertain and subject to market dynamics. Investors are now paying more attention to meme currencies like Pepe and Shiba Inu.
