- Pepe’s price continued to fall on Tuesday after falling more than 20% since Saturday.
- The technical outlook suggests further correction as momentum indicators show signs of weakness.
- On-chain data also indicates a bearish picture as the PEPE long-to-short ratio is below one, and daily active addresses are falling.
Pepe (PEPE) continues its decline and is trading below $0.000015 at the time of writing on Tuesday after losing more than 22% since Saturday. The technical outlook suggests further correction as momentum indicators show signs of weakness. Furthermore, on-chain data of the frog theme-based meme coin also indicates a bearish picture as PEEP’s long-to-short ratio is below one, and daily active addresses are falling.
Pepe shows signs of double-digit improvement
Pepe price faced rejection around a falling trend line (drawn by connecting multiple highs since early December) on Saturday and declined 22.86% by Monday, falling below its 200-day exponential moving average at $0.000017. It closed. At the time of writing on Tuesday, PEPE falls below its 61.8% Fibonacci retracement level at $0.00015 (calculated from the early November low of $0.0000077 to the early December high of $0.000028).
If PEPE continues to retreat and close below $0.000015 on a daily basis, it could extend the decline by 14% from the current levels and reclaim its daily support level at $0.000013.
The Relative Strength Index (RSI) on the daily chart reads 38 below its neutral level of 50 and points to the downside, indicating strong bearish momentum. The Moving Average Convergence Divergence (MACD) indicator also shows a bearish crossover on Sunday, suggesting a sell signal and a downtrend.
PEPE/USDT Daily Chart
Another bearish signal is Coinglass’s Pepe long-to-short ratio, which reads 0.80, the lowest level in more than a month. This ratio below one reflects bearish sentiment in the markets as more traders are betting on the price of Pepe falling.
Pepe long-to-short ratio chart. Source: CoinGlass
Santiment’s Daily Active Address Index, which tracks network activity over time, paints a bearish picture for the frog-themed meme coin. An increase in the metric indicates more blockchain usage, while decreasing addresses point to less demand for the network.
In the case of PEPE, daily active addresses fell from 28,131 in mid-November to 2,606 last week. This indicates that demand for Pepe’s blockchain usage is decreasing, which is not a good sign for Pepe’s price.
Pepe active address chart. Source: Sentiment
