PEPE Coin Retreats Below $0.0000080 After Meteoric Rise

PEPE Coin has been a standout in the crypto market, with its price soaring by more than 585% in the last month. Despite a dip of around 9.68% over the past week, its market value has shot up from $511 million to $2.52 billion in just a few months. In 24 hours, the trading volume jumped by 59%, with more than $1.1 billion worth of PEPE traded. This makes PEPE the 15th most traded cryptocurrency. The current price is $0.000007834 with a day's trading volume of $851 million, although it's down by 6.05%, according to CoinMarketCap.

On the intraday chart, the PEPE coin saw a substantial spike, reaching highs at approximately $0.00000837 before undergoing a sharp decline below the $0.0000080 level. This significant dip denotes a potential resistance level that PEPE struggled to break, suggesting a sell-off occurred after the peak. PEPE coin has attempted a recovery above $0.0000082, with each peak lower than the previous, forming a downward trend.

Downtrend Signal on PEPE/USD 4-Hour Chart

The PEPE/USD 4-hour chart has shown a clear shift in the market sentiment, stepping away from a bullish wedge pattern into a potential bearish trend. Initially, PEPE/USD was trading within a narrowing range, creating what technical analysts refer to as a wedge pattern. 

This consolidation often implies that the market is gathering momentum for a significant move, either upward or downward. For PEPE/USD, the breakout occurred to the downside, marking a transition toward bearish sentiment.

Upon exiting the wedge, PEPE/USD set a high point labeled as 'Top 1', only to fall back and rally to a slightly lower level for 'Top 2'. This pattern of creating successive lower highs is a hallmark of a bearish trend, where buyers are unable to sustain upward momentum to revisit previous high levels. 

The price path on the 4-hour chart suggests a continued bearish outlook, setting a potential target that lies significantly lower than the current price levels.PEPE coin has established key support and resistance levels that are critical to its short-term price action on the 4-hour chart. The coin has recently sought support at the 0.618 Fibonacci retracement level, which is roughly at the price point of 0.00000550. This level is crucial for traders watching PEPE, as it has historically acted as a strong base from which the price has rebounded.

Looking at resistance levels, PEPE has encountered a significant barrier at the 0.382 Fibonacci level, approximately ($ 0.0000080). This particular level has consistently capped upward movements, serving as a hurdle for buyers trying to push the price higher.

The MACD indicator provides additional context to the price action, with the MACD line (blue) hovering above the signal line (orange), suggesting that bullish momentum had been in play. However, the shrinking histogram bars point to a weakening of this momentum, hinting that traders might be losing some of their earlier bullish convictions.