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Heading Towards a Steep Plunge: Pepecoin's Potential 70% Depreciation
A foreboding price trend signifies that Pepecoin (PEPE) might face a dramatic decrease of another 70%, especially if the broader market continues its downward trajectory.
In the weeks following its all-time high of $0.00000449, Pepecoin's valuation has plummeted over 70%. A blend of technical and fundamental indicators foresees an even steeper descent in the forthcoming days.
Pepecoin's Dire Price Projection: The Infamous Bearish Reversal Pattern
From a technical perspective, Pepecoin's price trajectory suggests a stark decrease from its present standing. The primary contributor to this pessimistic forecast is the well-known head-and-shoulders (H&S) bearish reversal pattern.
For those unfamiliar with the term, the H&S pattern is traditionally seen as a bearish reversal sign by technical analysts. It emerges when the price exhibits three peaks along a shared neckline support. The central peak, known as the "head," surpasses the adjacent two, labeled the "left shoulder" and "right shoulder."
The pattern reaches its resolution once the price dips below its neckline. Correspondingly, technical analysts usually determine the pattern's downside target by adding the maximum distance between the head and neckline to the breakdown point.
On May 22nd, Pepecoin's value descended below its H&S neckline, which was roughly at $0.00000156. This indicates a potential downside target in June, close to $0.00000041, marking about a 70% fall from current prices.
However, the downward movement prompted by the H&S breakdown may come to a halt as PEPE approaches $0.00000082, a potential point of rebound in June. This represents a decline of around 30% from the current price and corresponds with Pepecoin's 0.786 Fibonacci line. It also previously acted as support in early May.
Yet, if Pepecoin's price ascends and reestablishes the H&S neckline as a support, the breakdown scenario may be undermined.
A Mass Exodus of PEPE Holders?
Despite its recent downturn, Pepecoin's current value still represents a 4,000% increase from its initial exchange price of $0.00000044. Consequently, further price drops may incite current PEPE holders to solidify their profits, thereby amplifying the bearish sentiment.
This becomes more likely when considering the activities of the top 15 addresses holding PEPE. Almost all have seen a decrease in their Pepecoin holdings in recent weeks, with some even liquidating their entire holdings to cement early profits.
Further fueling the bearish sentiment is the stagnation in the number of daily PEPE holders since May 5, implying a lack of new users entering the network.
The dwindling participation has resulted in diminished trading volumes across cryptocurrency exchanges, giving current tokenholders another reason to be bearish.
However, should a broad uptrend in the crypto market occur, fueled by potential upswings in the Bitcoin and Ether markets, Pepecoin may evade this grim forecast.
