Analysts predict a sharp drop in the popular digital token

According to cryptocurrency analysts, the PEPE memo token may be ready for further losses. The price of Pepe (PEPE) has risen by 956% over the past 365 days, however, the coin’s growth is currently facing serious problems, signaling a potential decline in its price trend.

On the 4-hour chart, PEPE is trading near the 20- and 50-day exponential moving averages (EMAs), key technical indicators used to assess the trend of cryptocurrencies.

Historically, PEPE’s price has seen extended rallies when it traded above these EMAs. For example, on August 22, the 20-day EMA (blue) crossed the 50-day EMA (yellow) to form a golden cross, a bullish signal. Now, both EMAs are converging, indicating that PEPE’s short-term potential is at a crucial stage. This could either lead to a new price rally or signal a further drop, depending on market momentum.

Internal data from the IntoTheBlock chain suggests that PEPE bears may be gaining control. An analysis of the Bulls and Bears indicator by BeInCrypto points to this shift. «Bulls» are addresses that have purchased at least 1% of the total trading volume during a given period, while «bears» are those that have sold a similar amount. When there are more bulls than bears, it signals a potential price increase. However, since there are currently more bears than bulls, the price of PEPE may face a significant decline.