PEPE meme coin plunges 5.32% as selling pressure intensifies

PEPE meme coin, once a hot topic in the cryptocurrency world, is now facing significant selling pressure, leaving investors uncertain about its future. The token, which experienced explosive gains during its early rally, is currently trading at $0.00000646, marking a 5.32% daily decline. This downward trend has raised questions about whether PEPE is heading towards a complete collapse or if it can stage a comeback.

Analyzing the daily chart, PEPE is in a confirmed downtrend, with price action forming lower highs and lower lows since its peak near $0.00002500. The continued decline suggests that investors are exiting their positions, pushing PEPE further into bearish territory. The lack of strong buying support has led to longer red candles, indicating panic selling. With no significant recovery attempts, PEPE is dangerously close to breaking critical support zones, which could lead to even deeper losses.

A major factor to consider when evaluating whether PEPE can rebound is the Relative Strength Index (RSI). PEPE’s RSI is currently at 23.52, deep in oversold territory (below 30). This indicates that selling pressure is extreme, and a temporary relief rally could be on the horizon. The last time PEPE’s RSI dropped this low, it bounced over 40%, suggesting that a potential dead cat bounce could occur if buyers step in. However, while oversold conditions often lead to short-term price jumps, they do not guarantee a long-term trend reversal. If market sentiment remains bearish, PEPE could stay undervalued for an extended period, struggling to recover.

The Moving Average Convergence Divergence (MACD) is an important trend-following indicator that can reveal whether PEPE is close to bottoming out. PEPE’s MACD remains in negative territory, with no sign of a bullish crossover. The MACD histogram continues to show weakening momentum, meaning sellers are still in control. For PEPE to show bullish potential, we need to see the MACD line cross above the signal line, which hasn’t happened yet. Until then, PEPE’s downtrend is likely to continue.

At this stage, PEPE price is dangerously close to breaking its last major support level. The critical level to watch is $0.00000620.