🌎 Pepe Coin Price Drops Amid Broader Market Decline

Pepe Coin Price Drops Amid Broader Market Decline

The Pepe coin price has dropped for three consecutive days, invalidating a previously bullish pattern and forming a new bearish one. This decline has seen Pepe, the third-largest meme coin globally, fall to a low of $0.00002117, marking its lowest level since December 6.

Market Impact and Volume

This decline coincided with broader cryptocurrency market losses, with Bitcoin (BTC) falling to $104,400, retreating from its record high of $108,000. The total market cap of all cryptocurrencies dropped by 5% to $3.82 trillion. Pepe’s decline occurred in a high-volume environment, with its 24-hour volume reaching $2.2 billion, significantly higher than Shiba Inu’s (SHIB) $725 million.

Interest Rate Decision and Market Impact

The ongoing crypto sell-off is happening as traders await the upcoming Federal Reserve decision. This decision is crucial, as it will set the tone for what to expect in 2025. Analysts expect the bank to slash interest rates for the third time this year and hint towards a pause in the coming year.

Interest rate decisions significantly impact risky assets like stocks and cryptocurrencies. Historically, these assets perform well during rate cuts and when the Fed adopts a dovish stance.

Smart Money Exiting the Market

Nansen data shows signs of smart money exiting the market. The number of tracked smart money traders holding Pepe has dropped 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.

Pepe 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 that connects the lowest swings since November 26. Additionally, it has formed a three red crows pattern, which happens when three bearish candles follow each other.

Key Levels to Watch

In the near term, Pepe’s price may continue falling. The bearish trend will solidify if the coin drops below 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 (the November 14 swing high) and the all-time high of $0.00002833.