Breakdown Below Monthly Support Signals 15% Downside Risk

While the bullish sentiment associated with Bitcoin ETF is fading, the crypto market is returning to the prevailing bearish sentiment. A recent price drop in the leading cryptocurrencies Bitcoin and Ethereum has triggered extended correction in several major altcoins. As a result, the Frog theme memecoin PEPE is heading lower which led to a breakdown below monthly support. Is further downfall expected?

Also Read: PEPE Coin Price Analysis: Can $0.0000008 Support Defy the Downward Trend?

Support Breakout Threathens Pepe Coin for Longer Correction

• The Pepe coin is trapped in a sideways trend stretched from $0.00000095 and $0.00000078 horizontal levels.
• A bearish breakdown from $0.00000082 will set the prices for a 15% fall
• The 24-hour trading volume in the Pepe coin is $130 Million, indicating a 92% gain.

Source- Trading

The Pepe coin price has witnessed aggressive selling pressure in the last two days, registering around 11%. On 30th August, the falling price gave a sharp breakdown below the monthly support of $0.00000082.

This breakout offers sellers additional resistance to pressurize the price for further downfall. As of now, the coin price trades at $0.00000081 with an intraday gain of 1.25%. The minor uptick may retest the breached support as potential resistance and accumulate selling orders.

The post-breakdown fall may likely break the $0.00000078 support and plunge the PEPE price 15% down to hit the psychological level of $0.0000007.

Is PEPE Price Ready for Directional Move?

While the downward projection seems valid for Pepecoin, it should be noted that the last seven days’ price action has traded within the range of the August 25th candle. Therefore this candle’s high of $0.00000095 and low of $0.00000078 stands as strong resistance and support.

If the coin price should demand pressure at the $0.00000078 mark in the coming days, the crypto holders may witness prolonged consolidation.

• Moving Average Convergence Divergence: A bearish crossover state between the MACD(blue) and signal(orange) line reflects the overall trend remains bearish.
• Average Directional Index: The rising ADX slope reflects the aggressive bearish momentum remains intact.