February 8, 2025
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Pepe Coin, the meme-inspired cryptocurrency, has suffered a recent setback as it failed to hold support at $0.00000078, casting doubt on its short-term rally prospects. The sellers’ inability to follow through with their downward pressure indicates some volatility in their conviction. The important question now is whether the uncertainty will pave the way for buyers to gain higher ground this month.

According to the latest data from CoinGecko, PEPE is currently trading at $0.000000807186, showing an increase of 2.8% over the past 24 hours. However, in the last seven days, the coin has seen a 7.6% drop in its value.

Price analysts suggest that if the daily candle manages to close above the critical level of 0.00000078, the recent breakdown could be considered a “bear trap”, which may provide a ray of hope for PEPE enthusiasts.

A bearish 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 up instead. This “traps” or tricks traders who were expecting a further drop in price into selling their positions only to see the price rise.

Challenges ahead for PEPE

While the bullish momentum appears promising, PEPE’s recovery is constrained within a descending channel pattern that has been in play for the past two months. To gain more confidence in a revival, buyers need to breach the upper trend line of this channel. Such a breakout has the potential to propel Mem coin past the coveted $0.000001 threshold.

In a separate report, worrying figures have come to the fore regarding the health of the PEPE network. The latest data from Sentiment shows that active addresses associated with PEPE declined by 83% in the last quarter. Additionally, there has been a significant decline in both transaction volume and number of transactions.

Despite the recent price rally and bullish sentiment, PEPE faces challenges ahead, primarily due to a continuing decline within a descending channel pattern. Failure to break out of this pattern could cause Mem coin to continue down.

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User exodus spells trouble for Pepe Coin

The sentiment date cited in the report paints a bleak picture for PEPE as the network grapples with a sharp decline 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 reduction in transaction volume and transaction numbers has further compounded the network’s problems.

PEPE’s recent struggle to hold support at $0.00000078 calls into question its near-term prospects. Although a correction is expected, the coin is stuck in a descending channel pattern. The crucial breakout point lies ahead, and the crypto community is keenly watching to see if buyers can gain higher ground.

In addition, 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.

(The contents of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

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source: www.newsbtc.com

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