Pepe coin has been trading in a narrow range formed on August 25 for more than a week. Based on this daily candle, the $0.00000095 high and $0.00000078 low stand as strong resistance and support for cryptocurrency traders.
With the recent pullback in the crypto market, PEPE sellers cited an attempt to break out of the formation's support trend line as a signal to continue the downward move.
Fake crash scenario hints at a potential rally
Pepe coin is stuck in a sideways trend extending from the $0.00000095 and $0.00000078 levels.
PEPE breaking below $0.00000078 creates 15 percent downside risk
The 24-hour trading volume in Pepe coin is 77 million dollars, indicating a gain of 10.9 percent.
Falling on September 1, the Pepe coin price made a major breakout from the 0.00000078 range support with a significant red candle. Loss of this support indicates renewed bearish momentum and sellers' motivation to continue the previous downtrend.
However, today a gap was seen on the PEPE daily price chart and it entered the range levels. The sellers' inability to provide a proper follow-up to the downtrend reflects some weakness in their convictions. If the frog-themed meme coin closes above 0.00000078 by the end of the day, the previous breakout will be a bear trap, which could support crypto buyers.
Will PEPE price regain $0.0000009?
In technical analysis, when the asset price gives a false indication of potential downside movement, the price immediately rises and a bear trap occurs. Therefore, a false breakout of the altcoin price at $0.00000078 would be a suitable support to push memecoin higher to $0.00000095.
Relative strength index: The daily RSI slope close to the oversold zone reflects the increasing potential for a bullish reversal.
Exponential moving average: The downward sloping 20-day EMA will offer additional resistance to bullish bounces.
