PEPE Price Prediction: Bear Trap Sets Stage for 20% Price Surge

02 Sep, 2023

Senior Technical Analyst

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Fake Breakdown Scenario Hints at a Potential Upswing

The Pepe coin is trapped in a sideways trend stretched from $0.00000095 and $0.00000078 horizontal levels.
A bearish breakdown from $0.00000078 puts PEPE at 15% downside risk
The 24-hour trading volume in the Pepe coin is $77 Million, indicating a 10.9% gain.

Source- Trading

On September 1st, the falling Pepe coin price gave a massive breakdown from the range support of 0.00000078 with a significant red candle. Losing this support signals the replenished bearish momentum and sellers’ motive to continue to the prior downtrend.

However, today the PEPE price showed a gap up in the daily chart and entered the range levels. The seller’s failure to offer a suitable follow-up to the bearish breakdown reflects some weakness in their conviction.

If by the day’s end, the frog-themed meme closed above 0.00000078, the prior breakdown would be a bear trap, which may in response bolster the crypto buyers.

Will PEPE Price Regain the $0.0000009 mark?

In technical analysis, a bear trap is formed when the asset price gives a false indication of potential downward movement, but immediately reverts the price higher to trap heist sellers. Therefore, the PEPE price false breakdown from $0.00000078 will flip the price as viable support to surge the memecoin to $0.00000095

Relative Strength Index: The daily RSI slope close to the oversold region reflects the increasing potential of a bullish reversal.
Exponential Moving Average: The downsloping 20-day EMA would offer additional resistance against bullish bounces.

Investment disclaimer: The content reflects the author's personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.