Analysis of Pepe Coin Price Slip
The recent decline in Pepe coin’s price, with the value dropping to $0.00002117, its lowest level since December 6, signals a potential end to its rally. This downturn is characterized by high trading volumes, with a 24-hour volume of $2.2 billion, which is significantly higher than that of Shiba Inu ($725 million). The decline of Pepe coin is part of a broader cryptocurrency market trend, with Bitcoin retreating from its record high of $108,000 to $104,400 and the total market cap of all cryptocurrencies decreasing by 5% to $3.82 trillion.
Impact of Federal Reserve Decision
The upcoming Federal Reserve decision is anticipated to have a significant impact on the cryptocurrency market. Analysts expect the bank to slash interest rates for the third time this year and hint at a pause in the coming year. Historically, interest rate cuts have led to a dovish stance by the Fed, which in turn has resulted in the performance of risky assets like stocks and cryptocurrencies. However, the current sell-off in the crypto market, including Pepe coin, may be a result of traders awaiting the Fed’s decision and its potential implications for 2025.
Smart Money Exit
Data from Nansen indicates that smart money is exiting the Pepe market, with the number of tracked smart money traders holding Pepe decreasing to about 95 from over 115 two weeks ago. Their collective Pepe balance has also declined to 7.5 trillion tokens from last month’s 8 trillion. This exit of smart money further supports the notion that the Pepe coin rally may have ended, at least in the short term.
Technical Analysis
The daily chart for Pepe coin price reveals a strong bearish trend, with the coin dropping below the ascending trendline that connects the lowest swings since November 26. The formation of a three red crows pattern, which occurs when three bearish candles follow each other, also indicates a bearish trend. The invalidation of the previously bullish falling wedge pattern further solidifies the bearish outlook. For the bearish trend to continue, Pepe’s price may need to drop below the 50-day moving average at $0.00001933 and the Ichimoku cloud. Conversely, a bullish reversal would require the coin to surpass key resistance levels at $0.000026 (the November 14 swing high) and the all-time high of $0.00002833.
Predictions
Based on the analysis, several predictions can be made regarding the future of Pepe coin:
- Short-term decline: Given the current bearish trend and the exit of smart money, Pepe coin’s price may continue to decline in the short term.
- Dependence on Federal Reserve decision: The outcome of the Federal Reserve decision will significantly impact the cryptocurrency market, including Pepe coin. A dovish stance by the Fed could lead to a recovery in the crypto market.
- Importance of key resistance levels: The ability of Pepe coin to surpass key resistance levels, such as $0.000026 and $0.00002833, will be crucial in determining the future direction of its price.
- Impact of broader market trends: As a meme coin, Pepe’s price is heavily influenced by broader market trends. Therefore, any significant movements in the cryptocurrency market are likely to impact Pepe coin’s price.
In conclusion, the recent decline in Pepe coin’s price, combined with the exit of smart money and the current bearish trend, suggests that the rally may have ended. However, the outcome of the Federal Reserve decision and the ability of Pepe coin to surpass key resistance levels will be crucial in determining its future direction.
