The price of Pepe Coin followed a sharp decline, similar to other digital currencies, as the market adopted a more cautious approach, characterized by aversion to risk.
Pepe (PEPE), the third-largest meme coin, dropped to $0.0000156, its lowest level since Dec. 20.
The downturn occurred simultaneously with a persistent rise in bond interest rates and a fall in U.S. stocks and cryptocurrencies. The Dow Jones index plummeted by 700 points, while the Nasdaq 100 and S&P 500 dropped by 245 and 35 points respectively.
Bitcoin‘s price dipped to around $90,000, while the Crypto Fear and Greed Index indicated a neutral stance at 47 points. The combined value of all cryptocurrencies decreased by approximately 4%, putting the total market cap at roughly $3.19 trillion.
The persistent drop in cryptocurrency values is largely due to increasing apprehensions about the Federal Reserve adopting a firm stance, given the robust performance of the U.S. economy and decreasing unemployment rate. On Friday, it was reported that the U.S. unemployment rate declined to 4.1% in December, with approximately 256,000 new jobs created. This data has sparked worries that the Fed might extend higher interest rates for an extended period.
In simple terms, the upcoming Consumer Price Index (CPI) report, set for release on Wednesday, could be a significant factor influencing Pepe and other cryptocurrencies. This is because economists predict that the CPI will indicate an increase in headline inflation from 2.7% in November to 2.9% in December.
If these calculations are correct, it might indicate that the Federal Reserve will continue to adopt a cautious stance. Officially, they seem more concerned with managing inflation compared to the job market situation. Furthermore, some of Donald Trump’s suggested policies, such as deportations and tariffs, are anticipated to lead to an increase in prices.
It’s encouraging to note that Pepe Coin’s futures open interest has held strong over the last few days. The open interest peaked at $438 million on January 13 and has been maintaining this level since then. Generally speaking, a high open interest is viewed favorably in the world of cryptocurrencies, as it suggests continued engagement from traders.
Pepe coin price forms a risky pattern
The day-by-day graph indicates that the value of Pepe token reached an high of $0.00002845 on December 9th, but since then it has fallen below both its 50-day and 100-day average lines, suggesting that bears might be taking over.
Moreover, it appears that Pepe has developed a well-known reversal signal known as a head-and-shoulders pattern. Meanwhile, both the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have exhibited bearish divergence patterns, suggesting potential price decline ahead.
If the price falls below the 50% Fibonacci retracement point at $0.00001465, it might suggest a continued drop, possibly taking the price down to the psychologically significant support level of $0.000010.
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2025-01-13 20:14