The price of Pepe (PEPE) has soared more than 10% in the last 24 hours. Let’s figure out whether the price will be able to break out of the descending channel.
PEPE rose by double digits, jumping to the resistance line of the descending channel where it is currently trading. Consider the odds softcoin on a clean bullish breakout from this channel.
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The bulls are trying to break free
Due to the general decline in the cryptocurrency market in the last month, PEPE has also been in a downtrend. At the time of writing, the coin has lost 25% of its value.
As a result, a descending channel was formed on the chart, in which the coin has been moving since June 25. The outgoing channel appears bearish pattern. It is formed when the value of an asset declines consistently, creating a series of declining highs and lows. The upper channel line serves as resistance (currently at $0.000013). Its lower limit is support (now at $0.0000074).
Price dynamics on daily graphics confirms that the price is ready to break the upper line of this channel.
Targeting a test of the upper limit of the descending channel means an attempt by the price to break out of the bearish trend.
The positive price dynamics of the last 24 hours are also receiving support onchain indicator price divergence and daily number of active addresses (DAA), which carry out transactions on the project network. It helps to understand whether the price movement is supported by the relevant activity in the network.
At the time of writing, the value of this indicator is above zero and is 24%. A positive DAA divergence indicates an increase in the number of unique addresses interacting with the asset. This is a bullish signal that indicates increasing user engagement and activity on the network.
PEPE Forecast: Demand continues to grow
The rising demand for PEPE is also visible in the rising relative strength index (RSI). Although it still remains below the neutral 50 level, the uptrend confirms that the bulls are trying to regain ground. Currently, RSI for PEPE is at 41.67 and is tending towards the central line. This signals an increase in buying activity.
If this sentiment persists, memcoin may maintain the current uptrend and move towards $0.0000096.
However, if the buying activity begins to decrease, the price will roll back inside the descending channel and may fall to the level of its support.