Pepe Price Forecast: PEPE poised for a 15% slump as it fails to overcome key barrier

Pepe (PEPE) price looks set to unwind most of its recent gains after it retested and failed to overcome resistance from the 200-day Exponential Moving Average (EMA) on Saturday and declined 3.6% on Sunday. At the time of writing, it trades slightly down 1% on Monday. Additionally, the suggestion of on-chain data supports the bearish trend ahead, as evidenced by a long-to-short ratio below one.

Pepe faces resistance around 200-day EMA

 

Pepe price retested and faced resistance by the 200-day Exponential Moving Average (EMA) around $0.0000095 on Saturday. This 200-day EMA roughly coincides with the broken ascending trendline that has previously acted as resistance and a 50% price retracement level. At the time of writing, it trades slightly down 1% at $0.0000090 on Monday after declining by 3.6% on Sunday.

If the $0.0000095 level continues to hold as resistance, PEPE could crash 15% to retest its daily support at $0.0000077.

The Relative Strength Index (RSI) on the daily chart trades just above its neutral level of 50, while the Awesome Oscillator (AO) trades below its neutral level of zero. Both indicators must trade below their neutral levels for the bearish momentum to be sustained.

PEPE/USDT daily chart

According to Coinglass's data, PEPE's long-to-short ratio is at 0.885 on Monday. This ratio reflects bearish sentiment in the market, as a number below one suggests that more traders anticipate the token’s price to fall, bolstering the frog-themed-based meme coin's bearish outlook.

PEPE long-to-short chart

Despite the bearish thesis signaled by both on-chain data and technical analysis, the outlook will shift to bullish if PEPE's daily candlestick closes above $0.0000098. This scenario could lead to a 5% rise to retest its 61.8% Fibonacci retracement level at $0.000010.