PEPE Faces a Bearish Turning Point: Head-and-Shoulders Pattern or Triangle Optimism

Pepe (PEPE), a cryptocurrency inspired by memes, has dropped to its lowest point in several months as investors react to a significant breach of major support levels, sparking uncertainty over whether the token can recover or will continue to slide. Its price has slipped beneath $0.00000445,

and setting off bearish signals in technical analysis. that unless the price quickly climbs back above $0.0000059, the downward momentum is expected to continue.

Technical signals continue to point to selling pressure.

is trading below all key exponential moving averages—the 20, 50, 100, and 200-day lines— . The MACD histogram remains in negative territory, and on-chain liquidity has decreased, with netflows on spot exchanges also negative . Open interest in PEPE futures has dropped sharply to $193.5 million, down from over $1 billion in mid-2023, .

Recent price moves have led to comparisons with a classic head-and-shoulders chart pattern, which often signals a bearish reversal. Crypto analyst Ali Marteniz

decisively, PEPE could fall toward $0.00000185. At the same time, mixed technical patterns add to the uncertainty. to a possible move down to $0.00000185, —similar to XRP’s 2017 consolidation—suggests there could be upward momentum through December.

The current chart structure for the token closely mirrors a head-and-shoulders formation, where a break below the neckline typically accelerates bearish momentum.

often comes before a notable drop, as seen in both traditional and digital asset markets.

Broader economic uncertainty is also weighing on market sentiment.

that the probability of a rate cut in December has plunged to 45% from 91% just a week ago. This more hawkish outlook has intensified risk aversion, hitting speculative tokens like PEPE especially hard. The token has lagged behind the wider crypto sector, while the overall market dropped by 6.22%.

Blockchain data highlights waning enthusiasm. The total value locked (TVL) in PEPE’s main decentralized exchange pool is $4.2 million, much less than the $176 million in futures open interest, showing that speculative activity dominates.

that more PEPE is being withdrawn than deposited, suggesting holders are accumulating, but this hasn’t prevented the price from falling.

Traders are now watching to see if PEPE can reclaim the $0.00000479 mark (the 7-day simple moving average) to help stabilize its price.

, pointed out that a retest of $0.0000059 could indicate a shift in the longer-term trend, but until that happens, the bearish outlook remains. a support base near current prices or continues to fall will depend on wider market trends and possible catalysts, such as regulatory changes or renewed interest from retail investors.

With PEPE

according to the latest update, the near-term outlook appears challenging. Still, analysts note that extreme fear readings—like the CMC Fear & Greed Index at 11— market sentiment if crucial support levels are maintained. For now, the market remains cautious, weighing bearish technical patterns against the chance of a sharp rebound.