The frog-themed cryptocurrency Pepe, which reached an all-time high of $0.00002825 in early December 2024, has seen its price drop by about 79%. This downturn has been exacerbated by the emergence of a 'death cross' pattern, a technical indicator signaling bearish momentum.
Death Cross Pattern and Its Significance
A 'death cross' occurs when a short-term moving average, usually the 50-day, crosses below a longer-term moving average, such as the 200-day. For PEPE, this pattern emerged in February 2025, coinciding with a price drop to levels not seen in months.
Current Status and Market Expectations
As of this writing, PEPE was down 8.65% in the last 24 hours to $0.00000596, reflecting continued bearish trends. PEPE is down 11% in the past week. The cryptocurrency market has seen $912 million in liquidations over the last 24 hours, with $2.2 million attributed to PEPE.
Is a Reversal Likely?
Since reaching $0.00002832 in December 2024, PEPE has broadly declined. However, the Relative Strength Index (RSI) on the daily chart indicates oversold conditions, which could precede a rebound. If PEPE holds above the $0.000005 support level, a significant rally might follow.
Despite the significant drop in PEPE's price and deteriorating market sentiment, technical indicators suggest a possible future reversal. Nevertheless, the lack of specific catalysts and external economic factors may continue to pressure the cryptocurrency in the short term.
