Meme coins like PEPE face significant challenges amid declining crypto prices, breaking multiple support levels. Could this downtrend test the $0.000010 psychological mark?Over the past 24 hours, the meme coin segment has dropped by 13% in valuation and stands at $102.28 billion. The newly launched official TRUMP token has flipped PEPE into the third-biggest meme coin.This shift triggered a massive sell-off in PEPE, causing its price to drop nearly 13% within a day. With PEPE falling below the $0.000015 psychological threshold, selling pressure continues to mount.Will this downfall result in a nosedive to the $0.000010 mark? Let's find out.PEPE Price AnalysisPEPE showcases a bullish failure to surpass the local resistance trendline in the daily chart. This results in four consecutive bearish candles, accounting for a price drop of 26.63%.The ongoing correction has breached the 38.20% Fibonacci retracement level at $0.00001670, confirming a bearish head-and-shoulders pattern breakdown.Pepe Price ChartNow, PEPE is approaching a critical support zone comprising the 50% Fibonacci retracement level at $0.0000144 and the 200-day EMA line.The breakdown rally has dropped the RSI line close to the oversold zone. Furthermore, it has influenced a bearish crossover between the 50 and 20 EMA lines.Hence, technical indicators continue to give a sell signal for PEPE. Using the Fibonacci level, the ongoing rally will likely test the 78.60% Fibonacci level at $0.00001024 if the sellers break the 200-day EMA line.On the positive side, if the broader market stabilizes, a turnaround from the 200-day EMA line will retest the broken neckline at $0.00001670.On-chain Data Reveals Key Support for PEPEDespite the ongoing selling spree, more than 64.38% of addresses holding PEPE are in the money. This accounts for 255.04k addresses.Screenshot 2025 01 21 at 20337 PMPEPE on-chain levelsHowever, weak support exists between $0.000013 and $0.000015, involving 7.28 trillion PEPE tokens held by 10,380 addresses. The next significant supply zone lies between $0.000011 and $0.000013, with 25.53 trillion PEPE tokens.This suggests the ongoing correction could extend to the $0.000010 psychological level. However, this critical zone may be a strong support, possibly leading to a bullish reversal.Overall, PEPE shows a high chance of nearing the $0.000010 psychological zone. However, the strong support at the psychological mark is likely to provide a bullish reversal.
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