Crypto analyst and trader Ali Martinez is cautioning that a leading memecoin may experience a notable drop as the market declines.
Martinez informs his 128,900 followers on the platform X that Pepe (PEPE) is “on the verge of crashing” after it fell below the lower boundary of a parallel channel where it has been trading for nearly a year.
“Since March 2024, Pepe has typically declined to the lower support trend line before rebounding to the upper resistance trend line. Historically, it has similarly dropped back to the lower support trend line before bouncing back. However, today, Pepe plunged below this support trend line. A surge in selling pressure could lead Pepe to a 70% price correction, potentially reaching $0.00000316.”
A parallel channel typically indicates that an asset is on an upward trajectory, forming higher highs and higher lows. A breach below the diagonal trendline of the channel signifies invalidation of the uptrend.
As of now, Pepe is trading at $0.00000769, which is a 73% decrease from its all-time high of $0.00002803 reached in December 2024.
Next is Bitcoin (BTC). Martinez indicates that the moving average convergence divergence (MACD) indicator is signaling a bearish trend for Bitcoin on the weekly chart. The MACD is an essential tool used to assess trend direction and momentum changes by analyzing the variance between short-term and long-term exponential moving averages.
“Each time the MACD shows a bearish crossover on the weekly chart, Bitcoin has historically experienced an average correction of around 40%. The MACD has just indicated another bearish crossover!”
At the time of this writing, Bitcoin is valued at $81,645.
Regarding Solana (SOL), Martinez asserts that SOL must maintain its support level around $125. His analysis suggests that if the $125 support level fails, Solana could see a significant drop below $70.
Currently, Solana is trading at $143.
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Disclaimer: The views expressed at The Daily Hodl are not investment advice. Investors should conduct their own research before engaging in any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be advised that your transfers and trades are at your risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice. Additionally, The Daily Hodl participates in affiliate marketing.
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