This Crypto Trader Predicts PEPE Price Will Crash 70% – Is This Meme Coin To Avoid?

PEPE has been trading sideways for months now. After hitting new all-time highs multiple times in May, the price entered a long correction.

A popular crypto analyst is predicting another massive drop for the 3rd largest meme coin, PEPE (PEPE). The meme coin has already lost 70% of its value, and the analyst believes it's preparing for another 60-70% drop.

PEPE Price Analysis

After hitting new all-time highs multiple times in May, PEPE price began a slow but steady decline. Last week saw the price finally drop below a critical support line, signaling a potential shift from support to resistance at this level.

A descending channel formation is evident on the PEPE/USDT chart, indicating the current bearish trend. The price is consistently making lower highs and lower lows within this channel, which aligns with the analyst's bearish outlook.

A strong support zone around $0.000003 is represented by a green box on the chart. The analyst considers this level as a key area to watch for a potential bottom, should the price continue to decline.

As of the latest data on the chart, the price is $0.00000781, sitting just below the resistance line of the descending channel. The analyst's warning is based on the price being below the red box resistance, suggesting a potential drop of 60%-70%. This aligns with the bearish descending channel formation.

The chart also includes a hypothetical price path indicating a possible decline towards the green support zone around $0.000003. If this plays out, it would result in a big correction, matching the analyst's PEPE price forecast.

PEPE technical analysis (PEPE/USDT 1-day chart) via TradingView.

Plasma Point, a Web3 and DeFi data aggregator, recently reported that the meme coin sector is finally cooling off after an incredible rally earlier this year.

As we can see, PEPE is part of both Ethereum and the meme coin sector, and it's clear that both are struggling to gain any momentum right now.

With this in mind, it's hard to disagree with the analyst's bearish outlook on PEPE. Unless something drastic changes in the coming weeks, we shouldn't expect any major upward moves from the 3rd largest meme coin.

All in all, PEPE is likely a meme coin to avoid for now, especially if you're looking for big gains in the coming months.

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