Pepe coin has seen its price take dramatic turns in the past weeks. The token recently dropped 46% from a December high, reducing its market capitalization from $10 billion to $4.1 billion.
However, many other meme coins are also seeing the same drop, as some have suffered sufficient losses over the last two weekÂ
Looking at the chart, the price is in a downtrend, forming lower highs and lower lows. Right now, it’s holding up at a support level of $0.000010.
Meanwhile, the recent sell-off corresponds with a sharp decline in futures open interest, which has dropped from over $556 million in January to $258 million. This means investors are showing only little interest in the token
Despite this, many Pepe holders are holding their positions. The number of Pepe holders increased from 384,000 to 404,100 over the past month, according to data from CoinCarp.
Right now, the chart has formed a “death cross” pattern, where the 50-day and 200-day Weighted Moving Averages crossed, typically considered a bearish indicator.
Also, the RSI is below the 50% average level and currently sitting at 39%. This means that the bears are still in control of the market.
On the 4-hour chart, the price is forming a bearish flag pattern, which indicates more possible declines. Pepe could potentially dip to $0.0000058, the lowest swing level from last August.
However, there is a potential case for a reversal. The chart has also formed a falling wedge pattern, which often precedes a breakout. If this plays out fine, Pepe could see a rebound back to $0.000028, offering a 188% gain from its current value.
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