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CoinGape 2025-01-31 16:12:54

Pepe Coin Price Bounces Back 30%. Is This a Dead Cat Bounce?

Pepe Coin Price Bounces Back 30%. Is This a Dead Cat Bounce?

Pepe coin price has risen by 30% for three consecutive days. This rebound coincided with more upside of Bitcoin, which rose above $105,000 after the Federal Reserve interest rate decision. While some analysts expect that Pepe will keep rising, there is a risk that this may be a dead cat bounce. Pepe Coin Price is Rising, But This May Be a Dead Cat Bounce Pepe, the third-biggest meme coin, has bounced back after bottoming at $0.00001132 earlier this week. Still, the coin remains about 50% below its highest point in 2024. There is also a risk that the ongoing recovery is part of a dead cat bounce (DCB). A DCB is when a falling asset stages a brief comeback and then resumes the downward trend. It is commonly known as bull trap and is common during a bear market. The risk that this is a dead cat bounce is also because the coin has formed a series of higher lows and lower lows. Therefore, a dead cat bounce will be invalidated if the Pepe coin price rises above the 50-day moving average and the upper side of the falling channel. A break above these levels will point to more Pepe price gains, potentially to the all-time high of $0.00002830, about 100% above the current level. That bullish view is justified by the fact that the coin has formed what looks like a bullish flag pattern on the daily chart. On the other hand, a drop below the key support at $0.00001132 will validate the view that the ongoing recovery is part of a dead cat bounce. It will also invalidate the bullish flag view and point to more downside to the support at $0.0000060, its lowest point in 2024. Pepe Coin Price Analyst Sees Pepe Price Surging to $0.000032 A potential catalyst for the Pepe coin price is that some analysts are optimistic that it will jump soon. In an X post , one analyst cited the bullish flag pattern mentioned above. He predicted that it will soar to $0.000032, up by 125% from the current level. His view is that the token’s lowest level this week marked a bottom. Further, the value of Pepe and the futures open interest are diverging. The interest has remained steady, while the price has fallen, a potential bullish sign. Pepe Open Interest Another reason for a Pepe price forecast is that there are emerging signs that whales are accumulating the coin. Whale purchases are often bullish for a coin since these are highly sophisticated investors. The post Pepe Coin Price Bounces Back 30%. Is This a Dead Cat Bounce? appeared first on CoinGape .

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