Pepe Coin, the meme-inspired cryptocurrency, has faced a recent setback as it failed to sustain support at $0.00000078, casting doubts on its short-term rally prospects. The sellers’ inability to follow through on their downward pressure hints at some wavering in their conviction. The crucial question now is whether the uncertainty will pave the way for buyers to reclaim higher ground this month.
As of the latest data from CoinGecko, PEPE currently trades at $0.000000807186, reflecting a 2.8% increase in the past 24 hours. However, over the past seven days, the coin has experienced a 7.6% decline in value.
Price analysts suggest that if the daily candle manages to close above the critical level of 0.00000078, the recent breakdown could be deemed a “bear trap,” that might offer a glimmer of hope for PEPE enthusiasts.
A bear trap is a situation in trading where the price of an asset appears to be entering a bearish (downward) trend but then reverses and moves upwards instead. It “traps” or tricks traders who were expecting further price declines into selling their positions, only to see the price rise.
Challenges Ahead For PEPE
While the bullish momentum appears promising, PEPE’s recovery remains constrained within a falling channel pattern that has persisted for the past two months. To gain more confidence in the revival, buyers must breach the upper trendline of this channel. Such a breakout has the potential to catapult the meme coin past the coveted $0.000001 threshold.
Total crypto market cap at $1.02 trillion on the daily chart: TradingView.com
In a separate report, worrying statistics emerge regarding the health of the PEPE network. Santiment’s latest data reveals an 83% drop in active addresses associated with Pepe (PEPE) over the past quarter. Additionally, both transaction volume and transaction count have experienced a significant downturn.
Despite the recent price rally and bullish sentiment, PEPE faces challenges ahead, primarily due to the persistent downward trend within the falling channel pattern. The failure to break free from this pattern could see the meme coin continue its downward trajectory.
PEPE seven-day price action. Source: Coingecko
User Exodus Spells Trouble For Pepe Coin
Date from Santiment cited in the report paints a bleak picture for PEPE as the network grapples with a sharp decline in active users. This alarming 83% decrease in active addresses highlights the waning interest in the cryptocurrency, possibly undermining its long-term viability. Moreover, the decrease in transaction volume and transaction count further compounds the network’s woes.
PEPE’s recent struggle to maintain support at $0.00000078 raises questions about its near-term prospects. While there is hope for a recovery, the coin remains trapped within a falling channel pattern. The critical breakout point lies ahead, and the crypto community watches eagerly to see if buyers can reclaim higher ground.
Simultaneously, the exodus of active users and declining transaction metrics pose additional challenges for the future of PEPE, emphasizing the need for a sustained and robust recovery strategy.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
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