PEPE Price Jumps 23% Today: Why It’s A Bull Trap

Highlights

PEPE open interest rose by 4.86% in the last 24 hours, signaling investor interest.
PEPE needs to break above 50-day and 200-day EMAs to turn bullish.
The overall trend for Pepe price is still bearish, with a potential short-term rally.

Pepe price spiked over the last 24 hours in line with the recovering markets, joining the ranks of the handful of crypto assets leading this rally. The recent Bitcoin crash shook the entire crypto market, leaving the frog-based meme coin down 51% in a week, causing significant losses for many investors. Despite the 24% jump over the past day, PEPE is still down 34% over the last seven days.

Pepe Price Struggles Uphill

The PEPE coin price chart shows a downward trend within a descending channel, indicated by the blue lines. The price has been moving lower, respecting this channel’s upper resistance and lower support.

Recently, the price tested the channel’s lower boundary and bounced upward, signaling a potential short-term reversal within the overall downtrend.

The recent bullish candle that formed after touching the channel’s lower boundary suggests increasing buying pressure. This could imply a potential short-term rally, especially if the next candles confirm this momentum.

PEPE price has a temporary resistance zone around $0.00000767 at the 50-day EMA ($0.0000104) and at the 200-day EMA ($0.00001027), which aligns with the upper boundary of the descending channel. There is also a key support level at $0.000006, close to the recent bounce point within the descending channel.

Both EMAs are trending downward, reinforcing the bearish momentum. The price is currently below both, indicating bearish market sentiment.

The Relative Strength Index (RSI) is 32.66, near the oversold territory. This suggests that the market might be experiencing a short-term bounce, as it typically does after hitting oversold levels. The Chaikin Money Flow (CMF) is at -0.19, indicating that there is still a negative money flow, but the recent uptick could signal a reduction in selling pressure.

If the PEPE price rallies and breaks above the 50-day and 200-day EMAs, it may signal market strength and subsequently invalidate the current bearish thesis. The price of PEPE would test the upper boundary of the falling channel around $0.000012, which is a 50% rise from the current price.

Bullish Scenario for PEPE Coin Price

Data from Coinalyze shows PEPE open interest rose by 4.86% in the last 24 hours, coupled with the surge in price, which signals a rising interest of investors in the token.

Additionally, CoinGecko data shows that PEPE’s daily trading volume increased slightly by 1% in the last 24 hours, which coincided with the bounce off the channel support. A high volume on such a move suggests strong interest and could indicate that the current level might be a temporary bottom.

Since the overall trend is still bearish, a clearer trend reversal signal may or may not be a breakout above the 200 EMA before considering long-term positions.

Frequently Asked Questions (FAQs)

1. Is the current PEPE price movement considered a bull trap?

Yes, it could potentially be a bull trap. Despite the recent price jump, PEPE is still down 34% over the past seven days and is trading within a descending channel. This indicates that the broader trend is still bearish, and the recent rally may be temporary.

2. What are the key resistance and support levels for PEPE?

The key resistance levels for PEPE are around $0.00000767, $0.0000104 (50-day EMA), and $0.00001027 (200-day EMA). The critical support level is at $0.000006, near the recent bounce point within the descending channel.

3. What should investors consider before taking long-term positions in PEPE?

Investors should wait for a clear trend reversal or a breakout above the 200-day EMA before considering long-term positions, as the overall trend remains bearish and the recent rally may be short-lived.

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Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

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