Although the upward momentum looks promising, PEPE's recovery continues to be constrained within a falling channel pattern that has been ongoing for the past two months. In order to gain more confidence in the revival, buyers need to violate the upper trend line of this channel. Such a breakout has the potential to push meme money past the coveted $0.000001 threshold.
The meme-inspired cryptocurrency Pepe Coin recently faced a setback as it failed to maintain support at $0.00000078, raising doubts about its short-term rally prospects. The inability of sellers to keep track of their downward pressure indicates some fluctuation in their convictions. The key question now is whether the uncertainty will pave the way for buyers to regain the higher ground this month.
Price analysts suggest that if the daily candle manages to rise above the critical level of 0.00000078, the recent collapse could be considered a “bear trap” that could offer a glimmer of hope for PEPE enthusiasts.
A bear trap is a situation in trading where the price of an asset enters a downward (bearish) trend, but instead reverses and moves upward. It ”traps" or tricks traders who are waiting for further price drops to sell their positions just to see the price increase.
A separate report reveals alarming statistics about the health of the PEPE network. The latest data from Centiment reveals an 83% drop in active addresses associated with Pepe (PEPE) in the last quarter. In addition, both the transaction volume and the number of transactions have experienced a significant decline.
Despite the recent price increase and the bullish feeling, PEPE faces challenges ahead, primarily due to the persistent downward trend in the falling channel pattern. The inability to get rid of this model may cause the breast medallion to continue its downward trajectory.
User Exodus Creates Problems for Pepe Coin
The history of Centiment, mentioned in the report, paints a gloomy picture for PEPE as the network grapples with a sharp decline in active users. This alarming 83% drop in active addresses highlights the declining interest in cryptocurrency and possibly undermines its long-term viability. In addition, the decrease in the transaction volume and the number of transactions further increases the network's troubles.
Polygon (MATIC) Falls Below the Critical Level - Will Sellers Come Out?
Pepe's recent struggle to keep support at the $0.00000078 level raises questions about his near-term prospects. While there is hope of a recovery, the coin remains trapped in a falling channel pattern. The critical breaking point lies ahead, and the crypto community is eagerly watching to see if buyers can regain the higher ground.
At the same time, the migration of active users and October's declining transaction metrics pose additional challenges for pepe's future and highlight the need for a sustainable and robust recovery strategy. #crypto2023 #Binance #ETH
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