PEPE Price Downtrend: Expert Warning Signals More Drops Ahead?

PEPE is facing selling pressure. An expert warns of a potential continuation of the token’s ongoing correction. Is a further downtrend inevitable?

PEPE Price Downtrend: Expert Warning Signals More Drops Ahead?

Hold onto your hats, folks, because the frog-themed crypto, PEPE, is making headlines again – and not exactly for hopping to the moon. With the price facing selling pressure and experts sounding the alarm, it's time to dive into what's happening with PEPE.

Expert's Bearish Outlook

Veteran trader Matthew Dixon recently shared his analysis on X, and it's not looking too rosy for PEPE. He pointed out a bearish divergence – where PEPE hit a higher high in mid-July, but the Relative Strength Index (RSI) made a lower high. This divergence often means momentum is fading, and sure enough, PEPE's price took a nosedive towards the $0.000010 area.

Dixon suggests that PEPE might be in an ABC corrective pattern or the early stages of a bearish impulse. Either way, he believes the downtrend might not be over. Ouch.

Key Levels to Watch

So, what are the critical levels to keep an eye on? PEPE is currently hovering around a support zone between $0.000010 and $0.0000095. If it slips below this, Dixon warns that selling could accelerate, potentially pushing the price down to $0.00000880 or even $0.00000820.

On the flip side, the first hurdle for PEPE is around $0.0000115 to $0.000012. Dixon notes that a strong move above $0.0000125 with decent volume could signal the end of the correction and a possible rebound towards $0.0000138 to $0.0000150. But until that happens, any bounce is likely just a temporary reprieve.

Whale Activity and Market Sentiment

Despite the bearish signals, there's been some interesting whale activity. Large transactions involving trillions of PEPE have been recorded, suggesting some big players are still moving the token around. This activity coincided with PEPE erasing a zero from its price valuation, briefly.

However, the overall sentiment remains cautious. The RSI is close to 42, indicating a slight recovery in momentum, but there's no bullish divergence yet. Dixon's view is neutral to slightly bearish, anticipating a possible short-term bounce followed by another potential drop if key levels aren't held.

My Take: Navigating the PEPE Waters

Alright, let's be real. The crypto market is a wild ride, and PEPE is no exception. While whale activity might offer glimmers of hope, the technical indicators and expert warnings suggest caution. It's like trying to predict the weather based on a frog's croak – interesting, but not exactly reliable. I agree with Dixon's analysis, and the bearish divergence is hard to ignore. Plus, the potential for panic selling if key support levels break down is a real concern.

The Bottom Line

PEPE is at a critical juncture. Whether it bounces back or continues its downtrend remains to be seen. Keep an eye on those key levels, watch for any signs of bullish divergence, and remember – never invest more than you can afford to lose. After all, even frogs need to be careful where they hop. Stay safe out there, crypto fam!