🐸 $PEPE The coin price rebounds by 30%. Is this a dead cat bounce?
The price of Baby has surged by 30% for three consecutive days. This rally coincided with further gains in Bitcoin, which rose above $105,000 after the Federal Reserve’s interest rate decision. While some analysts expect Baby to continue rising, there is a risk that this could be a dead cat bounce.
🔸#PepeCoinprice is rising, but this may be a dead cat bounce
Baby, the third-largest meme coin, has rebounded after hitting a low of $0.00001132 earlier this week. However, the coin is still about 50% below its 2024 high.
There is also the risk that the ongoing recovery could be part of a dead cat bounce (DCB). A DCB is when a declining instrument makes a short recovery and then resumes its downtrend. It is commonly known as a bull trap and is common during a bear market.
There is a risk that this could be a dead cat bounce as well because the coin has formed a series of higher lows and lower lows. Therefore, the dead cat bounce will be invalidated if the price of Babycoin rises above the 50-day moving average and the upper side of the descending channel.
A break above these levels would signal further gains for Baby, with the price potentially reaching an all-time high of $0.00002830, which is around 100% above the current level. This bullish view is justified by the fact that the coin has formed what appears to be a bullish flag pattern on the daily chart.
On the other hand, a break below the key support at $0.00001132 would validate the view that the ongoing recovery is part of a dead cat bounce. It would also negate the bullish view and signal further decline towards the support at $0.0000060, the 2024 low.
🔸 Analyst expects#Pepeprice to reach $0.000032
A potential catalyst for the price of Babycoin is that some analysts are optimistic that it will soon make a jump. In a post on X, one analyst mentioned the bullish flag pattern mentioned above. He predicted that it will jump to $0.000032, a 125% increase from the current level. His opinion is that the coin’s low this week represents a bottom.
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