Pepe coin price could be at risk as a dangerous pattern forms

Pepe Coin’s price joined other cryptocurrencies in a steep downward trend as the market embraced risk-aversion sentiment.

The third-largest meme coin, Pepe (PEPE), fell to $0.0000156, its lowest level since December 20.

The decline coincided with a continued rise in bond yields and a decline in American stocks and cryptocurrencies. The Dow Jones index fell 700 points, while the Nasdaq 100 and S&P 500 fell 245 and 35 points, respectively.

While Bitcoin (BTC) fell to $90,000, the crypto fear and greed index rose to a neutral value at 47. The total market value of all cryptocurrencies fell 4% to $3.19 trillion.

The ongoing crypto crash stems from growing fears that the Federal Reserve will continue its hawkish tone as the US economy continues to perform well and the unemployment rate falls. Data released Friday showed the U.S. unemployment rate fell to 4.1% in December and the economy added more than 256,000 jobs. These figures have increased concerns that the Fed will keep interest rates higher for longer.

The next major catalyst for Pepe and other cryptocurrencies will be the Consumer Price Index report scheduled for release on Wednesday. Economists expect data to show headline inflation rising to 2.9% in December from 2.7% in November.

If these predictions are correct, it may indicate that the Fed will continue its hawkish stance. Officials stated that they were focusing on controlling inflation rather than the labor market. Additionally, some of Donald Trump’s proposed policies, including deportations and tariffs, are expected to raise prices even further.

On a positive note, Pepe Coin’s futures open position has remained stable over the past few days. Open interest rose to $438 million on January 13 and remained at that level. Higher open interest is generally seen as a positive sign for the cryptocurrency as it indicates continued interest from investors.

Pepe coin price forms a risky pattern Pepe price chart | Source: crypto.news

The daily chart shows that Pepe token rose as high as $0.00002845 on December 9 and has since fallen below the 50-day and 100-day moving averages; This is a sign that the bears are taking control.

Additionally, Pepe created the head-and-shoulders formation, which is a popular reversal indicator. The Relative Strength Index and the Percentage Price Oscillator have both formed downtrend patterns.

A break below the 50% Fibonacci retracement level of $0.00001465 could signal further declines and potentially push the price towards the $0.000010 psychological support level.