During Tuesday’s trading session, the crypto market saw significant inflows as Bitcoin surpassed the critical $70,000 level. Amid this renewed momentum, the coin sector, known for its volatility, has shown notable movements. In particular, the frog-themed meme coin jumped 3.7%, testing a four-month resistance. However, analysts suggest that a final drop in the price of Pepe coins could occur before a major rally occurs.
Pepe Coin Price Poised for Final Drop Ahead of Expected 30% Rally
In a recent tweet, market analyst CryptoDoc highlights the price of Pepe coin mainly resonating in two converging trendlines of the daily chart. This consolidation reveals the formation of a bullish continuation pattern called a symmetrical triangle pattern.
Theoretically, converging trend lines provide a temporary break for the dominant trend to gain momentum before the next one. Over the past four days, Pepe price has rebounded from the pattern’s support trendline between $0.0000084 and $0.00000852, registering a 13% jump. As a result, Pepe’s market capitalization soared to $4.01 billion.
Despite the bullish trajectory, the analyst predicts a small retest or final dip at the green zone support, coinciding with the lower trendline of the pattern.
If history repeats itself, the lower support should replenish the bullish momentum in PEPE price and push it near 17% to challenge overhead resistance. A successful reversal of this overhead trendline into potential support could push the asset to $0.000012, registering growth of almost 30%.
Check out the article on best coins to buy for a detailed analysis.
Traders Support Bulls as Funding Rate and Open Interest Rise
According to data from coin mechanismThe open interest (OI) weighted funding rate recently climbed to $0.0139, indicating that longs are paying a premium to maintain their long positions. This spike suggests strong bullish sentiment in the market, with buyers showing confidence in further price appreciation.
Additionally, forward open interest has shown a recovery trend, rising from a recent low of $60.566 million to its current level of $132.7 million, representing a percentage growth of 119%. High open interest levels generally signal increased trading activity, amplifying market movements and potentially contributing to increased volatility.
On the contrary, if sellers cross the lower trendline, the bearish momentum will invalidate the thesis of a breakout aimed at driving an extended consolidation.
Frequently Asked Questions (FAQ)
The OI-weighted funding rate recently jumped to $0.0139, suggesting longs are paying a premium to maintain their long positions.
If sellers cross the lower trendline of the symmetrical triangle, it would indicate a change in momentum, invalidating the breakout thesis and potentially leading to extended consolidation.
Analysts expect a brief drop in Pepe Coin price to test support and regain bullish momentum. This drop is seen as preparation for a potential 30% rebound
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a solid command of technical analysis, he keeps a vigilant eye on the daily price movements of major assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging field of cryptocurrencies, where he continues to explore opportunities driven by his passion for trading.
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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