The Pepecoin price experienced a decisive breakdown from the support trendline of the inverted pennant pattern on May 30th. This occurrence indicates that the memecoin is potentially facing a significant downfall. Currently, the coin is trading at $0.00000127 and is expected to retest the broken support as potential resistance to assess price sustainability at lower levels. This pattern could have a crucial effect on the potential trend for PEPE.
A bearish pennant pattern could amplify the momentum, leading to a temporary break in the sideways trend. Additionally, the midline of the Bollinger band indicator could act as dynamic resistance for the falling PEPE price. The 24-hour trading volume for Pepecoin is $118.5 million, reflecting a 12.5% decrease.
Recently, PEPE’s price displayed short body candles above the $0.0000012 mark for three consecutive days, signifying weakness in the bearish momentum. As a result, any positive influence from the broader market sentiment could trigger an upswing in the coin to retest the breached support.
This potential bullish upswing may face considerable resistance at the combined overhead trendline and $0.00000147 mark. This suggests a possible rally of 15%. However, if sellers defend the reclaimed resistance, the post-breakdown fall could drop by 16%, reaching the $0.000001042 mark before plunging further to $0.000000835.
On the contrary, a breakout above the rising trendline could invalidate the bearish thesis. The end of the three-week consolidation period has left the PEPE price vulnerable to a significant downtrend. To assess the sellers’ conviction, a retest of the overhead trendline might be needed, potentially renewing the selling momentum. The possible decline could match the triangle structure’s lowest swing low near $0.00000835.
The Bollinger Band’s downsloping lower band represents the selling momentum remaining intact. Meanwhile, the daily Relative Strength Index (RSI) slope below the midline highlights the negative trend sentiment.
It is crucial to remember that this content may include the author’s personal opinion and is subject to market conditions. Conduct thorough market research before investing in cryptocurrencies, as the author or the publication does not hold responsibility for your personal financial loss.
Source: Coingape
