Pepe Coin's price has formed a new bearish trend after three consecutive days of decline. This article examines the contributing factors and the influence on the current state of the cryptocurrency market.
Recent Pepe Coin Changes
Pepe, the third-largest meme coin globally, has dropped to $0.00002117, its lowest level since December 6. This decline aligns with broader cryptocurrency market losses, including Bitcoin's drop to $104,400 and the total market capitalization of cryptocurrencies by 5% to $3.82 trillion. According to CoinGecko, Pepe's 24-hour volume was $2.2 billion, significantly higher than Shiba Inu's $725 million.
Impact of Fed Decisions on Cryptocurrencies
The ongoing crypto sell-off is occurring amidst anticipation of the Federal Reserve's upcoming decision. Analysts expect that the Fed will reduce interest rates for the third time this year and signal a pause in the coming year. Interest rate decisions significantly impact risky assets like stocks and cryptocurrencies, which historically perform well during rate cuts and dovish stances. Nansen data indicates signs of smart money exiting the market, as the number of tracked smart money traders holding Pepe has decreased to about 95 from over 115 two weeks ago.
Pepe Coin Price Analysis
The daily chart highlights a strong bearish trend for Pepe in recent days. The coin initially formed a falling wedge pattern, a typically bullish indicator, but this pattern has now been invalidated. The coin has also dropped below the ascending trendline connecting the lowest swings since November 26 and has formed a three red crows pattern. In the near term, Pepe's price may continue falling, especially if it breaches the 50-day moving average at $0.00001933 and the Ichimoku cloud. Conversely, a bullish reversal would be confirmed if the coin surpasses key resistance levels at $0.000026 and $0.00002833.
In the current scenario, Pepe Coin is facing a bearish trend while the cryptocurrency market undergoes pressure from macroeconomic factors. The coin's future price direction will depend on upcoming monetary policy decisions and market participants' confidence levels.
