Usman Salis
Frog-themed cryptocurrency PEPE is confronting important price barriers after confirming a "death cross" on its four-hour chart, while showing a 6.27% gain amid broader market recovery tied to cooling U.S. inflation.
PEPE Death Cross Signals Potential Bearish Momentum
The meme cryptocurrency PEPE has recently confirmed a "death cross" on its four-hour chart, a technical indicator that occurs when a short-term moving average (like the 50 SMA) crosses below a longer-term moving average (such as the 200 SMA). This technical formation typically signals potential bearish momentum in the market and has raised concerns among traders about PEPE's price trajectory.
The death cross comes at a time when PEPE has been struggling to gain upward momentum, consistently trading below key moving averages on both four-hour and daily timeframes. This persistent weakness has created challenges for the token as it attempts to recover from recent downward pressure.
PEPE Shows Recovery Amid Positive Market Sentiment
Despite the bearish technical indicator, PEPE managed to gain 6.27% in the last 24 hours, reaching $0.000006757 at press time. This upward movement coincides with a broader cryptocurrency market recovery, which has been supported by positive economic data from the United States.
The recovery seems largely influenced by cooling U.S. inflation figures for March. According to data released by the Bureau of Labor Statistics, the core Consumer Price Index (CPI), which excludes volatile food and energy costs, increased by just 0.1% from February, marking the smallest monthly increase in nine months. Year-over-year, the core CPI rose by 2.8% since March of the previous year, representing the weakest annual increase in over four years.
PEPE Challenging Key Moving Average Barriers
PEPE is currently testing crucial resistance levels, specifically its four-hour moving averages of 50 and 200, which stand at $0.00000673 and $0.00000709, respectively. These moving averages have recently functioned as significant price barriers, limiting the token's upward movement.
The moving averages on both four-hour and daily charts have formed a resistance zone that has prevented any substantial price appreciation for the meme coin. Breaking through these levels and converting them from resistance to support will be essential for PEPE to establish a more bullish trend in the near term.
PEPE Faces Major Test for Potential Breakout
The primary challenge for PEPE now lies in its ability to break above these moving averages and transform them into support levels. Such a breakthrough would require sustained buying pressure, which could potentially come from positive market sentiment, significant news developments, or fresh capital flowing into the cryptocurrency market.
Since reaching its all-time high of $0.00002825 on December 9, 2024, PEPE has experienced a decline and entered a trading range that has been capped by its 50 and 200 moving averages. For the meme coin to escape this range and resume an upward trajectory, it must first overcome the resistance created by these moving averages.
Until PEPE can successfully break through these technical barriers, it may continue to face selling pressure, particularly given the current market uncertainty. Technical analysis suggests that if a breakout occurs, potential targets include $0.000014, followed by $0.000021. Conversely, if selling pressure intensifies, support is anticipated around the $0.000003 level.
Usman Salis
