Cryptocurrency analyst and trader Ali Martinez is sounding the alarm on a top memecoin that could be facing a significant plunge amidst the current market downturn. Martinez, who has a substantial following of 128,900 on the social media platform X, has raised concerns about Pepe (PEPE) after the coin recently broke below the lower boundary of a parallel channel it has been trading within for nearly a year.
According to Martinez, the pattern for Pepe since March 2024 has been to drop to the lower support trend line before rebounding to the upper resistance trend line. However, the recent break below the support trend line could indicate a potential 70% price correction, pushing Pepe towards $0.00000316. This development has raised red flags for investors and traders who may be holding positions in Pepe.
A parallel channel is typically indicative of an asset trading in an uptrend, with higher highs and higher lows being printed. A breach below the diagonal trendline of the channel is seen as a sign that the uptrend has been invalidated. Pepe is currently trading at $0.00000769, down 73% from its all-time high of $0.00002803 in December 2024.
Moving on to Bitcoin (BTC), Martinez has pointed out that the moving average convergence divergence (MACD) indicator is flashing a bearish signal on the weekly time frame. Historically, whenever the MACD has signaled a bearish crossover on the weekly chart, Bitcoin has experienced an average correction of 40%. With another bearish crossover recently occurring, Bitcoin could be in for a significant price correction. As of the time of writing, Bitcoin is trading at $81,645.
In the case of Solana (SOL), Martinez has highlighted the importance of defending the crypto asset’s support level around $125. Should this level fail to hold, Martinez’s chart suggests that Solana could plummet to below $70. Currently, Solana is trading at $143.
In conclusion, Martinez’s insights and analysis provide valuable information for investors and traders in the cryptocurrency space. Keeping a close eye on these developments and potential price movements could help navigate the volatile market conditions. Stay informed and stay ahead in the ever-evolving world of cryptocurrencies.
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