PEPE forms ‘death cross’ amid negative US data

The price of the PEPE memecoin has fallen even further in the last 24 hours, devaluing 2.4% this Friday (06). As happened with Bitcoin (BTC), PEPE’s fall occurs in the context of the release of employment data in the United States. The so-called payroll will be released in a few hours, but the indicator’s preview shows a drop in employment data.

A low payroll means that the US employment force is falling, and in the market’s view, this is the biggest sign of an impending recession. Therefore, the PEPE price is in a dangerous position at a historical support level. If the payroll confirms the negative forecast, PEPE should fall by 26% and establish the famous “death cross” pattern.

While the “original” PEPE is struggling and could fall sharply, Pepe Unchained continues to show strength in its pre-sale. The token has already raised over $12.1 million and is on the final stretch of its target. The success of its multi-chain platform and Layer 2 network could bring huge potential to include PEPU in the “100x club”.

Impact of payroll on Pepe coin price

The Non–Farm Payrolls (NFP) report provides valuable insight into the health of the economy through the U.S. labor market. Market analysts and economists anticipate the report showing that the U.S. added 130,000 to 200,000 new jobs, with a net average of about 164,000 new jobs in August.

In contrast, the July jobs report came in at 114,000, down from 206,000 in June. In other words, the preview already indicates a decline in new job creation, which is bad news for analysts.

If the official payroll report is lower than the expected 164,000 or the unemployment rate remains elevated, the Fed will focus more on reducing unemployment and creating more jobs and resort to a 50 basis point rate cut. Despite the cut, a recession could cause further losses in the value of risk assets.

Bitcoin price usually reacts to NFP data and depending on how the report goes, BTC price could drop as low as $46,000. If that happens, Pepe coin price could fall below a key support level that could sink it 26% lower.

Increasing risks of Death Cross

PEPE’s price continues to fall as selling pressure weighs on the entire market. Down 2.4% and trading at $0.00000709, the price also coincides with the bottom of a range that PEPE has been in for the past 33 days.

If PEPE’s price falls below this support level, a PEPE Death Cross pattern could form. If this occurs, losses could be amplified, causing PEPE to fall to $0.00000520, a new low in 2024. Furthermore, the decline would represent an additional 26% loss.

A strong bearish signal is the 50-day Exponential Moving Average (EMA) approaching the 200-day EMA from the top. This is a classic sign that a Death Cross is imminent.

If this indicator completes formation, it could signal a prolonged downward movement for the PEPE price.

On the other hand, if tomorrow’s NFP report meets expectations, Bitcoin’s price could surge, boosting the entire market. In this scenario, PEPE’s price could avoid the impending bearish signal and surge by 27% to $0.00000900.

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