Analyst Backs Beercoin (BEER) to Bounce After Forming Double Bottom

Beercoin is one of the most widely trending Solana memecoins of the past 30 days. It ranks highest on Google Trends for Solana-related searches, with interest on the memecoin reaching a peak of 100 on June 5, shortly after its launch.

At its peak, Beercoin hit a price of $0.0005798 with a market cap of $300 million. However, the coin has since struggled, dropping as low as $0.00005677, a more than 30% drop in the past 24 hours. This decline has led many current holders to wonder if BEERCOIN will ever bounce back.

Will Beercoin (BEER) Recover?

Amid the skepticism, prominent market analyst Alan has noted a technical pattern forming on the Beercoin chart and potentially giving hope to BEER holders. Precisely, the price of Beer has formed a double bottom, and appears to have found some support on the $0.00005677 range. At the same time, the cryptocurrency is on the verge of a bullish cross on the Moving Average Convergence/Divergence (MACD) indicator.

In technical analysis, the formation of a double bottom typically indicates seller exhaustion. In simpler terms, cryptocurrency has reached a point at which many holders are unwilling to sell to cut their losses and may prefer to hold in anticipation of a price bounce. New investors may typically enter at this stage, propelling prices to new highs, either in the short or long term.

On the other hand, the MACD indicator flips bullish when the blue ribbon crosses the orange ribbon. Beercoin has approached this critical point, and could see gains if the cryptocurrency holds the current levels long enough to attract new buyers.

Lastly, it is worth noting that the current decline which has dampened investor interest in Beercoin, has coincided with a broader market correction, which has seen Solana (SOL) decline as low as $132 within the same timeline. If and when market sentiment improves, the memecoin might see a bounce to relieve investors.

Granted, there is no guarantee that Beercoin or even the market will overcome the bearish momentum anytime soon. Nonetheless, the Beercoin community remains active, especially on social media, with a proposed airdrop of a new memecoin, WATER, among the current initiatives being undertaken by the project to sustain investor interest.

The post Analyst Backs Beercoin (BEER) to Bounce After Forming Double Bottom first appeared on Cointab.