Double Bottom Pattern Sets Pepecoin for 28% Rally

The Frog-themed memecoin Pepe started witnessing aggressive selling pressure from mid-August, leading to a sharp reversal from the $0.00000147 mark. This downfall bolstered by a broader market sell-off triggered a 29% drop and pushed the prices back to $0.00000105 local support. The PEPE price sustainability at this support accentuates the investors accumulating at a discounted price and the potential for a bullish rebound. 

Also Read: Pepe Coin Leads Crypto Recovery; PEPE Price Jumps By 5%

Pepecoin Daily Chart: Key Points

•  The PEPE price witnessed high demand pressure at the $0.00000105 mark
• A bulls divergence in the daily RSI shop reflects the underlying bullish momentum is rising
• The 24-hour trading volume in the Pepecoin coin is $67.9 Million, indicating a 14.5 % loss.

Source- Tradingviewr

After the early week sell-off in the crypto market, the Pepe Coin buyers manage to sustain above the combined support of $0.00000105 and 78.6% Fibonacci retracement level. In the daily time frame chart the coin price shows a formation of a morning star at the aforementioned support indicating an upcoming reversal.

This second reversal from the PEPE price within a month indicates the potential development of a double bottom pattern. This chart pattern is often spotted at the bottom of a downtrend, leading to a sharp bullish recovery.

By the press time, the Pepe coin trades at $0.000113 with an intraday gain of 0.88%. Under the influence of this chart pattern, the anticipated upswing should lead the popular memecoin 28.8% higher to challenge the $0.00000147 neckline.

Is It The Right Time to Buy Pepecoin?

In theory, a correction fall to 78.6% FIB level reflects some weakness in bullish momentum. Therefore, interested market participants must remain cautious and can wait for a break above the 0.00000147 neckline for a safer entry. This breakout will offer buyers a better confirmation for a bullish recovery and could push the prices back to a $0.00000188 swing high.

• Relative Strength Index: concerning the two bounce-backs from the $0.000105 support, the daily RSI slope shows an evident rise indicating a high possibility of price reversal.
• Exponential Moving Averages: The downsloping EMAs(20, 50, and 100) could exert in-between resistances before the buyers reach the $0.00000147 neckline.