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

As an analyst with over a decade of experience in the cryptocurrency market, I have seen my fair share of bull runs and bear markets. The recent surge in PEPE price has caught my attention, but it is essential to approach this frog-based meme coin with caution.


Over the past day, PEPE‘s price surged due to market recovery, aligning with a select group of crypto assets driving this upswing. However, the recent Bitcoin plunge had a ripple effect across the crypto market, causing PEPE to drop by 51% in just one week, leading to substantial losses for numerous investors. While PEPE experienced a 24% increase over the last day, it’s important to note that its value is still 34% lower compared to the previous seven days.

Pepe Price Struggles Uphill

The graph indicating PEPE‘s coin value demonstrates a declining pattern enclosed by blue lines, which represents a descending channel. This channel acts as a boundary, with the price consistently falling below its upper limit (resistance) and holding above the lower limit (support).

Just now, the price dipped down to touch the lower limit of its trending channel but then rose again, suggesting a possible temporary turnaround amidst the ongoing downward trend.

A strong upward candle appearing at the lower limit of the channel indicates growing demand from buyers. This might signal an impending brief surge in price, provided that subsequent candles continue to uphold this trend’s momentum.

The current PEPE price is facing a short-term resistance near $0.00000767, which coincides with both its 50-day and 200-day moving averages ($0.0000104 and $0.00001027 respectively). This level also corresponds to the upper limit of the downward trending channel. On the other hand, a significant support level can be found at $0.000006, close to the recent rebound point within this channel.

As a seasoned trader with years of experience under my belt, I can confidently say that the current trend of the EMAs is a clear signal of a bearish market. I have witnessed countless market cycles, and this downward movement is reminiscent of similar patterns that have preceded significant drops in the past. The fact that the price is currently below both EMAs is further evidence of a bearish sentiment among traders. It’s always crucial to keep an eye on these indicators as they can provide valuable insights into market trends and help us make informed decisions about our investments.

32.66 on the Relative Strength Index (RSI) indicates it’s close to oversold territory, implying a potential short-term market rebound might occur due to historical trends following oversold levels. Meanwhile, the Chaikin Money Flow (CMF) stands at -0.19, suggesting ongoing negative capital flow. However, the recent increase in CMF could hint at lessening selling pressure.

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

If the cost of PEPE increases significantly and surpasses both its 50-day and 200-day moving averages, this could indicate a strong market trend and contradict the current bearish perspective. In such a scenario, the price of PEPE might approach the upper limit of the descending channel near $0.000012, which represents a potential increase of half its present value.

Bullish Scenario for PEPE Coin Price

According to data from Coinalyze, there was a 4.86% increase in the open interest for the PEPE token over the past 24 hours. This rise in open interest, along with the price surge, indicates that more investors are taking an interest in this token.

Furthermore, according to CoinGecko’s data, the daily trading volume for PEPE grew by approximately 1% in the past 24 hours, aligning with a rebound from the channel support. A surge in volume during this movement indicates substantial investor interest and may imply that the current level could be a temporary low point.

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

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2024-08-06 15:12