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Frog-themed cryptocurrency PEPE recently confirmed a "death cross" on its four-hour chart. A death cross happens when a short-term moving average (such as the 50 SMA) crosses below a longer-term moving average (such as the 200 SMA), indicating potential bearish momentum on the market.
This signal has sparked concerns among traders, as the price of PEPE has recently struggled to gain traction, continuously trading beneath its moving averages on both the four-hour and daily charts.
At press time, PEPE was up 6.27% in the last 24 hours to $0.000006757 as the broader crypto market recovered, with U.S. inflation cooling in March. The consumer price index, excluding volatile food and energy costs, was up 0.1% from February, the smallest increase in nine months, according to Bureau of Labor Statistics data issued Thursday. The core CPI rose 2.8% since March of last year, the weakest increase in over four years.
Amid the market's renewed positive momentum, PEPE is currently challenging its four-hour moving averages of 50 and 200 at $0.00000673 and $0.00000709, respectively, which have recently limited its price.
Major test ahead
The moving averages of 50 and 200 on the four-hour and daily charts have become a barrier, barring any significant upward movement.
Arman ShirinyanPEPE's current major test lies in its ability to break through the moving averages and flip them into support. This would necessitate consistent buying pressure from positive market sentiment, major news or fresh capital inflows into the crypto market.
After reaching all-time highs of $0.00002825 on Dec. 9, 2024, PEPE declined to enter into a range capped on the upside by its moving averages of 50 and 200.
For PEPE to break out of this range, it must first overcome the barrier created by the moving averages. Until then, the meme coin might face continued pressure from sellers, especially given the current market uncertainty.
A breakout would target $0.000014 ahead of $0.000021, while support is envisaged at $0.000003 if the price plunges further.
Vladislav Sopov
Dan Burgin