Crypto markets are trying to overcome the recent pullback after the bitcoin price fell below $62,000. Now that the price has skyrocketed above $62,800, the other altcoins have also started a significant rally. Meanwhile, a popular memecoin, Pepethat has triggered the 'Memecoin Mania', has once again led the best results of the day.
Many of the largest cap memes have done well recently, assuming prices will fall after each rally. The narrative quickly moved on to pre-sales, which already seem to have faded away and therefore a new narrative is expected to decline in the short term. However, PEPE has been one of the most traded tokens on exchanges, along with Bitcoin and Ethereum. This suggests that traders continue to have faith in memecoins, expecting a new wave to begin very soon.
The daily chart of PEPE price suggests that the price is experiencing a short-term contraction as both Bollinger bands are converging and volume is largely drying up. Additionally, the average true range (ATR), the indicator of volatility, is at its peak. These developments continue to favor the bulls, suggesting that the price is closer to triggering a new bullish wave soon.
The bears attempted to drag the levels lower but the bulls defended the support at $0.0000068, triggering a nice bounce above $0.000007. Therefore, a good breakout could be fast approaching, but before that, prices are expected to remain consolidated for longer than expected. This can create a lot of pressure on the price, and the bands will experience a big squeeze.
Therefore, considering the current market trend, memecoins are trading with significant strength and can therefore sustain the markets in the midst of a deep correction.
Also read: Best Meme Coins with Huge Potential to Turn $1 into $1000!
