The frog-themed memecoin, Pepecoin (PEPE), has been experiencing significant selling pressure due to broader market uncertainty. Over the past two weeks, a resistance trendline has been hindering buyers’ attempts to gain higher ground, pushing them towards lower levels. Pepecoin’s recent reversal from this trendline indicates the beginning of a longer sideways trendline, potentially initiating a new recovery cycle.
To reboot a bullish recovery, a breakout from the resistance trendline is necessary. A longstanding support trendline acts as a safety net, preventing Pepecoin from excessive losses. As of now, the 24-hour trading volume for Pepecoin is $222.5 million, indicating a 21.5% loss.
On May 20th, Pepecoin saw 11% intraday growth, thanks to a significant inflow. However, this sudden price spike with high volume was not enough to breach the overhead trendline, suggesting that sellers are still defending this resistance. Consequently, the prices have dropped by 10-11%, hitting a local support of $0.0000016. Currently trading at the $0.00000173 mark, Pepecoin is likely to witness a sideways move between the resistance trendline and the $0.0000016 support.
For downside potential, a breakdown below the aforementioned support could cause prices to tumble by 15-24%, retesting the $0.00000147 or a long-standing ascending trendline. In contrast, for upside potential, the memecoin would require a significant breakout from the overhead resistance.
Technical indicators such as the Relative Strength Index (RSI) and the Bollinger Band can provide insight into potential market movements. A higher peak in the 4-hour RSI slope reflects underlying growth in buying pressure hinting at an upcoming recovery. The upper band of the Bollinger band shows signs of an uptick, indicating that bullish momentum is intact and buyers could make another breakout attempt from the overhead trendline.
For Pepecoin’s price to reach $0.000003, it would necessitate a 74% growth in just seven days. While this level of growth may not be impossible for this popular memecoin, the current market scenario significantly reduces its chances. Pepecoin is unlikely to hit the mentioned target unless an external trigger revives prior recovery sentiment. Nonetheless, a bullish breakout from the overhead resistance could intensify bullish momentum, reaching $0.000003 more gradually.
It’s essential to note that the presented content may include personal opinions of the author and is subject to market conditions. Always conduct thorough market research before investing in cryptocurrencies, as neither the author nor the publication holds any responsibility for personal financial losses.
Source: Coingape
