PEPE Price Faces Potential 50% Crash Amid Bearish Signals

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The PEPE price may face challenges moving forward after struggling to sustain its upward trend. This has triggered a resurgence of bearish momentum, which could persist if bulls fail to elevate the price. Should the bears maintain their grip in this scenario, the PEPE price could continue to decline. According to crypto analyst Alan Santana, such a scenario could send the PEPE price back to levels unseen since early 2024.

PEPE Facing Potential Further Drop

Crypto analyst Alan Santana took to the TradingView platform to alert investors about a possible downturn that may be imminent for the PEPE price. This insight stems from the fact that the meme coin has retracted its gains from earlier this week and is beginning to show bearish signs.

One of the initial bearish indicators highlighted by the crypto analyst is the trading volume. He notes that the PEPE chart indicates increasing bearish volume alongside a breach below the MA200. This coincides with the correction the meme coin has experienced, driving its price below $0.000009.

Santana points out that the decline in PEPE’s price thus far has only occurred at the 0.618 Fibonacci retracement level. This leaves the 0.786 Fibonacci retracement level vulnerable, but not without risk. There remains a possibility that the PEPE price could dip to reach this level, though the analyst believes it won’t disrupt its long-term bullish framework.

However, if this level is breached, it could spell significant trouble for the meme coin. As the crypto analyst points out, it would be “devastating” if this occurs. Such a movement could induce a major crash, potentially driving the price towards new monthly lows. Moreover, this is compounded by a strong likelihood of a bearish trend.

Crash Targets

Should the PEPE price test the 0.786 Fibonacci retracement level and drop below it, the crypto analyst anticipates a substantial crash ahead for the price. There are two support levels identified, reliant on the strength of the bulls’ defense.

For the first support, the crypto analyst predicts it will be around $0.00007, representing over a 25% drop from here. If this support fails, the analyst foresees the PEPE price potentially dropping towards the next support just above $0.000004.

If the second scenario unfolds, then the PEPE price could face an over 50% decline from its current value. Conversely, if the price manages to hold from this point, it could rise above $0.00001 once more.