"Pepe Plummets: Analyst Warns of 70% Drop; Bitcoin's Bearish MACD Signal; Solana's $125 Support Test"

Coin WorldSaturday, Mar 1, 2025 5:21 am ET

1min read

Cryptocurrency analyst and trader Ali Martinez has issued a warning about a potential significant drop in the price of Pepe (PEPE), a top memecoin. According to Martinez, Pepe has broken down below the lower boundary of a parallel channel it has been trading in for almost a year, which could lead to a 70% price correction towards $0.00000316.

Martinez explains that a parallel channel suggests an asset is trading in an uptrend, printing higher highs and higher lows. A break below the diagonal trendline of the channel indicates that the uptrend has been invalidated. Pepe is currently trading at $0.00000769, down 73% from its all-time high price of $0.00002803 reached in December of 2024.

Turning to Bitcoin (BTC), Martinez says that the moving average convergence divergence (MACD) indicator is flashing a bearish signal for Bitcoin in the weekly time frame. The MACD is an indicator used to determine trend direction and identify changes in momentum using the differences in the short-term and long-term exponential moving averages. Martinez warns that every time the MACD has a bearish crossover on the weekly chart, Bitcoin has historically seen an average 40% correction. Bitcoin is currently trading at $81,645.

Lastly, Martinez discusses Solana (SOL), stating that SOL must "defend" the crypto asset's support level at around $125. If the $125 support level fails to hold, Solana could potentially plummet to below $70. Solana is currently trading at $143.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.