Pepe (PEPE) Bulls Try to Break Free as the Meme Coin\'s Value Skyrockets Over 10%

The value of the frog-themed meme coin Pepe (PEPE) has skyrocketed over 10% in the past 24 hours. As of this writing, a PEPE token is worth $0.0000092.

The price of the frog-themed meme coin Pepe (PEPE) has surged over 10% in the last 24 hours. At the time of writing, a PEPE token trades for $0.0000092.

The double-digit increase in the meme coin’s value has seen its price rally towards the resistance line of its established descending channel, begging the question of whether it can finally break out.

Pepe Bulls Try To Break Out

Due to the broader cryptocurrency market downturn in the last month, PEPE has been trending down. At its current price, the meme coin’s value has decreased by 25% in the last month.

This price downtrend has resulted in the formation of a descending channel, within which PEPE has been trending since June 25.

A descending channel is a bearish technical pattern that is formed when an asset’s price makes consistently lower highs and lower lows as it trends down.

The upper line of the channel acts as resistance, currently at $0.000013 for PEPE. Conversely, the lower line acts as support, set at $0.0000074 for the meme coin.

Readings from PEPE’s price movements on a daily chart show that it is poised to break out of this channel’s upper trendline.

When an asset’s price rallies and nears the upper trendline of the descending channel, it signals a potential breakout. This breakout attempt sees the asset’s price attempt to break out of the downtrend and reverse the decline.

This breakout attempt comes as PEPE’s price rally over the past 24 hours has been backed by a strong demand for the meme coin, according to readings from its Price-Daily Active Address (DAA) Divergence.

This metric compares an asset’s price movements with the changes in its number of daily active addresses. Investors use it to track whether the price movements are supported by corresponding network activity.

At the time of writing, the metric is valued at 24% above the zero line. A positive DAA divergence suggests that more unique addresses are interacting with the asset, and it is a bullish technical analysis signal that indicates growing user engagement and network activity.

Pepe Price Prediction: Demand Continues To Trickle In

The growth in PEPE’s demand can also be seen in the rising trend of its Relative Strength Index (RSI) indicator. Despite still being below the 50-neutral level, the RSI’s increase confirms that the bulls are attempting a comeback.

As of this writing, PEPE’s RSI is 41.67. This indicator measures an asset’s overbought or oversold market conditions. When it trends toward the center line, it signals a spike in buying activity.

Meanwhile, if this trend continues, PEPE may continue to trade up and see its price rise to $0.0000096.

However, if buying activity begins to wane, the meme coin’s price will fall back within the descending channel and may head towards its support.

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