• PEPE Coin, which initially experienced a remarkable rally after its launch in April-May 2023, has encountered a prolonged downward trend, shedding over 75 percent of its gains.
• If the PEPE Coin price fails to hold $0.0000007, there’s a possibility of an extended correction, with a critical support level at $0.0000006 and $0.0000005.

The PEPE Coin made a big bang entry into the crypto space registering a massive rally in the initial days of launch in April-May 2023. However, the PEPE price has been on a downward trajectory thereafter losing more than 75 percent of its gains.

During Q3 2024, Pepe (PEPE) has exhibited a consistent downtrend, forming a descending channel pattern. However, the latest endeavor to recover faced resistance at the upper boundary of this range, situated at $0.00000085. This rejection at the range-high may pose challenges for bullish momentum moving forward.

As of press time, the PEPE Coin is trading at a price of $0.0000007. Despite all the corrections recently, PEPE is still trading at 1,150 percent gains since the time of its launch.

The Pepe price recovery observed at the end of September faced a substantial hindrance, primarily from the confluence of resistance at $0.00000083 and the upper boundary of a well-defined channel pattern. Simultaneously, as Bitcoin, the leading cryptocurrency, experienced a retreat from the $28,500 mark, the Pepe coin followed suit, recording a 14 percent decline and reaching a local support level at $0.0000007.

Pepe Coin’s Overhead Supply Hints Further Downside

The recent reversal from the channel pattern suggests the potential for an extended correction in PEPE’s price. Should the price drop below the 20-day Moving Average, it could intensify selling pressure in the market. Notably, the 24-hour trading volume for the Pepe coin stands at $51 million, indicating a 35 percent decrease.

On October 2nd, the Pepe coin experienced its third rejection from the upper boundary of the channel pattern, which has been guiding its price movement for nearly three months. The price has consistently adhered to the parallel trendlines of this pattern, highlighting their substantial influence on market participant actions.

In the past, whenever the price met and retreated from this trendline, it triggered a significant decline in the daily chart. Considering this historical pattern, the most recent retreat presents a comparable risk to the valuation of this memecoin.

Currently, the PEPE price stands at $0.00000072. Should it dip beneath the crucial support at $0.0000007, traders might witness a sharp 15 percent drop, potentially probing the psychological support at $0.0000006. A more significant decline below this point would cement the bearish outlook, potentially leading the price to $0.0000005.

PEPE Coin Derivatives Data

The drop in Cumulative Volume Delta (CVD) suggested that sellers were gaining an upper hand at the time of writing. This reversal in price was accompanied by a decrease in Open Interest (OI) rates, signifying a decline in demand for PEPE in the Futures market in the hours leading up to the current moment.

However, the Open Interest improved, and the funding rates remained positive at the time of writing, indicating that bulls were making attempts to re-enter the market.

For potential bullish re-entry, traders might look to the confluence level of $0.00000060, although closely monitoring Bitcoin’s performance is essential for optimizing their trading setups