PEPE's Price Momentum Slows as Technical Indicators Flash Sell Signal
2min read PEPE, the meme-based cryptocurrency, has experienced a significant rally in mid-April 2025, but recent technical indicators suggest a potential slowdown in its price momentum. The TD Sequential indicator has flashed a sell signal as PEPE approaches resistance at the 1.272 Fibonacci extension. This signal, combined with changes in the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), indicates a possible consolidation period or retracement for the cryptocurrency.
The daily chart of PEPE shows a structured advance from the $0.00000045 level in April, followed by a series of Fibonacci retracement moves. After hitting resistance at the 0.618 level around $0.00000103, PEPE pulled back before regaining strength. This was confirmed by a bounce from the 0.382 support, which led to another breakout above the 1.0 Fibonacci extension near $0.00000134. The token later peaked at approximately $0.00000168 near the 1.272 extension, where current resistance has emerged, now marked by a new TD Sequential sell signal.
The RSI, which had previously surged above 75 during the rally, now reads 68.82, falling below the overbought zone of 70. The 14-day average RSI stands at 67.23, indicating signs of easing buying pressure. While these levels reflect bullish territory, the downward shift indicates that the strength behind PEPE’s upward move may be softening. This technical setup is being echoed by momentum indicators, suggesting a potential slowdown in PEPE's price momentum.
Further evidence of slowing momentum is visible on the MACD chart. Although the MACD line remains above the signal line, at 0.00000155 versus 0.00000114, the histogram bars have started to contract. This reduction in the histogram suggests weakening trend strength and raises the possibility of a bearish crossover if the MACD line dips below the signal line. The MACD trend remains positive but is showing signs of weakening, which could indicate a potential change in market sentiment.
Investors and analysts are closely monitoring these indicators, as they provide crucial insights into the market's sentiment and potential price movements. The slowing momentum and the RSI's position in the low 60s suggest that PEPE's price may be approaching a critical juncture. Traders are advised to exercise caution and consider the possibility of a price correction or consolidation phase. The current market conditions for PEPE reflect a period of recalibration, with several altcoins stabilizing around key support zones. This stabilization is a positive sign for the broader cryptocurrency market, as it indicates a potential shift in investor sentiment. However, the slowing momentum of PEPE's price serves as a reminder that the market remains volatile and unpredictable.
In conclusion, while the overall sentiment for PEPE remains bullish, the slowing momentum and the RSI's position in the low 60s warrant caution. Investors should closely monitor the technical indicators and be prepared for potential price corrections or consolidation phases. The current market conditions for PEPE reflect a period of recalibration, with several altcoins stabilizing around key support zones. This stabilization is a positive sign for the broader cryptocurrency market, as it indicates a potential shift in investor sentiment. However, the slowing momentum of PEPE's price serves as a reminder that the market remains volatile and unpredictable.
