Pepe Coin, the meme-inspired cryptocurrency, has recently suffered a setback as it failed to maintain support at $0.00000078, casting doubt on its near-term rally prospects. The inability of the sellers to continue their downward pressure indicates some hesitation in their conviction. The crucial question now is whether the uncertainty will pave the way for buyers to take higher ground this month.
According to the latest data from Mint geckoPEPE is currently trading at USD 0.000000807186, reflecting a 2.8% increase in the last 24 hours. However, over the past seven days, the coin has experienced a 7.6% drop in value.
Price analysts suggest that if the daily candle manages to close above the critical level of 0.00000078, the recent collapse could be viewed as a ‘bear trap’, which could provide 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 instead moves upwards. It “falses” or deceives traders who expected further price drops to sell their positions, only to see the price increase.
Challenges for PEPE
While the bullish momentum looks promising, PEPE’s recovery remains contained within a declining channel pattern that has persisted over the past two months. To gain more confidence in the upswing, buyers should break the upper trendline of this channel. Such a breakout has the potential to catapult the meme coin past the coveted $0.000001 threshold.
In a separate report, worrying statistics about the health of the PEPE network appear. The latest data from Santiment shows that the number of active addresses associated with Pepe (PEPE) fell by 83% over the past quarter. In addition, both the transaction volume and the number of transactions have experienced a significant decline.
Despite the recent price increase and bullish sentiment, PEPE faces challenges mainly due to the continued downtrend within the descending channel pattern. If it fails to break out of this pattern, the meme coin could continue its downward course.
User Exodus predicts trouble for Pepe Coin
The date quoted by Santiment in the report paints a bleak picture for PEPE as the network struggles with a sharp drop in active users. This alarming 83% drop in active addresses highlights declining interest in the cryptocurrency, potentially undermining its long-term viability. In addition, the decrease in transaction volume and number of transactions further exacerbates the network’s problems.
PEPE’s recent struggle to keep support at $0.00000078 raises questions about the near-term outlook. While there is hope for a recovery, the coin remains trapped in a declining channel pattern. The critical breakout point is just around the corner, and the crypto community is eagerly watching to see if buyers can reclaim higher ground.
At the same time, the exodus of active users and declining transaction numbers pose additional challenges to PEPE’s future, highlighting the need for a sustainable and robust recovery strategy.
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