Pepe Coin Facing Critical Support Level Breakdown: Implications for Investors

Meme Coin PEPE Faces Pivotal Test as Crypto Market Sentiment Shifts

Frog-Themed Token Approaches Critical Support Amid Broader Profit-Taking

The crypto market is showing early signs of a potential shift, with major tokens exhibiting signs of profit-taking following a recent rally. Against this backdrop, the frog-themed meme coin PEPE (PEPE) is facing a pivotal test as it approaches a critical support level.

PEPE, which has seen a remarkable 8% weekly gain, is now down 5.65% in the past 24 hours, trading at $0.000001247. This price action has pushed the token below its 200-day Simple Moving Average (SMA), a widely followed technical indicator used by traders to gauge long-term trend strength.

Cautious Traders Seek Rotation as Liquidations Mount

The broader crypto market sentiment remains generally positive, but several cryptocurrencies are currently lingering near local resistance levels, prompting cautious traders to lock in gains. In the last 24 hours, $327 million in positions have been liquidated across various assets, with long positions accounting for $272 million and shorts for $54 million.

This shift in market dynamics suggests that traders are seeking rotation and looking for macroeconomic cues, despite the optimism surrounding developments like ETFs, stablecoins, and broader adoption.

PEPE's Critical Support Test and Future Implications

For PEPE, the next line of defense is the 50-day SMA, which currently stands at $0.000001168. A decline below this level could signal trouble for the meme coin, as it risks "adding a zero" to its price, potentially pushing it from the sixth decimal place to the seventh.

If the selling pressure persists and PEPE falls further from the daily SMA 50, the token may test support at $0.000001037, which is the June 5 low. A breach of this support could see PEPE return to its previous range, which spanned from late January to early May.

As the crypto market navigates this potential shift in sentiment, investors and traders will be closely watching PEPE's ability to defend its critical support levels. The outcome of this test could have significant implications for the future trajectory of the frog-themed meme coin.