The Pepe price dropped more than 8% over the past 24 hours to trade at bitcoin $0.000001001 as of 8:30 am EST amid a down day for meme coins.
The Pepe Price Breaks Below A Key Support Level
Daily chart for PEPE/USDT (Source: TradingView)
The Pepe price dropped below the key support level at $0.00000105 over the past 24 hours as it remains trapped in a medium-term descending price channel. As a result, the meme coin is trading around the lower barrier of the price channel.
Historically, this has led to a bullish surge in the Pepe price. Looking at just the past 2 weeks, all of the tests of the lower barrier of the price channel were followed by a move towards the upside within the following 48 hours.
Should history repeat itself, the Pepe price may reclaim a position above the recently-breached $0.00000105 support level. A daily candle close above this significant point may then give the altcoin the foundation needed to rise to the upper boundary of the negative channel.
This would place PEPE at the major $0.00000130 resistance level. Continued buy pressure could then boost the Pepe price above this level to potentially rise to as high as $0.00000150 in the following couple of days.
This bullish thesis may be invalidated if the Pepe price closes a daily candle below the price channel’s lower barrier. In this more bearish scenario, the Pepe price may be at risk of plummeting to the subsequent support level at $0.00000075 throughout the following fortnight.
Technicals Show Bears Are Not Through Pulling The Pepe Price Down
Technical indicators on PEPE’s daily chart suggest that sellers will continue to drag the Pepe price down in the short term. The first indicator that investors and traders will want to take note of is the Moving Average Convergence Divergence (MACD).
Currently, the MACD line is breaking away below the MACD Signal line, which indicates that PEPE’s bearish trend shows no signs of slowing down. In addition to this, the Relative Strength Index (RSI) is falling below its Simple Moving Average (SMA) line. Traders normally identify this specific technical flag as a sign that sellers are growing stronger against buyers.
Get out of the way $PEPE#SpongeV2 is here to takeover 🔥$SPONGE #Web3 #Crypto #Altcoins pic.twitter.com/sEiHH65uTY
— $SPONGE (@spongeoneth) January 22, 2024
While PEPE seems to be at risk of a further decline, investors are turning their attention to Sponge V2, which has attracted the attention of Tron founder Justin Sun.
Meme Coin Attracts Tron’s Founder
I’ve decided to begin actively trading meme coins and promising projects through my public address. Please note, I will personally bear all potential losses from these trades, and any profits made will be donated entirely to charity.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 11, 2023
Justin Sun added Sponge V1 to his crypto portfolio last year after he announced that he would invest in “promising” low-capped coins. His position in the meme coin is currently valued at around $100K.
Looking To Repeat Its Initial Success
Sponge V1 experienced a remarkable 100X rise in 2023 and hit a peak market cap of $100 million. Now, investors who missed the Sponge V1 gains have access to a second lucrative opportunity through Sponge V2.
The new Sponge V2 upgrade introduces unique staking models such as stake-to-earn and stake-to-bridge, which allow investors to increase their holdings in the meme coin.
Through the V2 staking option, investors can stake their V1 tokens and get new Sponge V2 tokens through an automated bridging mechanism. More than 5.6 billion tokens have been staked on the project’s platform, suggesting growing investor interest.
The staking program is currently offering an annual percentage yield (APY) of 283% as well.
Investors and analysts are confident that Sponge V2 will repeat the success of its predecessor. One such analyst is crypto YouTuber Jacob Crypto Bury, who revealed that he has invested in Sponge V2. He also predicted that the meme coin has the potential to surge more than 100X after its official launch.
Investors that want to get in on this up-and-coming crypto that’s worthy of Justin Sun’s cash can do so by purchasing Sponge V2 here.
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