Over the past two weeks, the price of PEPE coin, a popular memecoin, has been moving sideways, caught between two converging trendlines. These trendlines are critical in shaping the coin’s future trajectory, with the overhead trendline acting as a major resistance that limits bullish recovery, and the lower trendline offering key support for maintaining the overall uptrend. A breakout from either level will be a determining factor for PEPE’s future direction.
The 24-hour trading volume of Pepecoin currently stands at $192.5 million, reflecting an 11.3% loss. On May 20th, the coin’s price experienced a bearish reversal from the overhead trendline, initiating a new bear cycle within its consolidation phase. Pepecoin’s price dropped 17.85% from the high of $0.00000193, reaching $0.00000158.
If this selling momentum continues, PEPE holders could be looking at a further 12-14% loss as the coin revisits the lower trendline around $0.0000014. Interestingly, PEPE had already rebounded twice from this support level, indicating traders’ willingness to accumulate at that price point. As a result, a reversal from the support trendline may prompt a new recovery rally, presenting an entry opportunity for interested buyers.
However, until there’s a breakout from the two converging trendlines, the PEPE coin’s sideways movement is likely to continue. Traditional pivot levels point to $0.00000166 and $0.00000186 as significant resistances and $0.0000014 and $0.0000012 as key support levels.
The current bear trend, as seen in the Directional Movement Index (DMI), suggests a higher possibility of revisiting the $0.0000014 low. Amid this negative market sentiment and ongoing bear cycle, PEPE’s prices are more likely to drop further towards the psychological support level of $0.0000014. Nevertheless, sellers might encounter a minor obstacle at the $0.00000147 support level, where increased demand pressure could slow the decline.
To sum up, the future of PEPE coin lies in the balance between the two converging trendlines. A breakout in either direction is critical in determining its upcoming trajectory. In the meantime, traders should keep a close eye on the support and resistance levels highlighted by the traditional pivot levels and DMI, as well as potential entry opportunities presented by any reversal from the support trendline.
Source: Coingape
