- PEPE has a strongly bullish market structure and consistent buying pressure.
- The retracement sidelined bulls are waiting for might not go as low as they would like.
- PEPE has gained 57.6% in the past week, outperforming other large-cap meme coins like Shiba Inu and Dogecoin.
PEPE’s recent surge has caught the attention of crypto enthusiasts, with its bullish momentum suggesting further gains. But will it sustain?
PEPE’s Bullish Momentum and Market Performance
Pepe (PEPE) has been in a strong uptrend, comfortably outperforming other well-known large-cap meme coins. In the past week alone, PEPE has gained 57.6%, compared to Shiba Inu’s (SHIB) -0.01% and Dogecoin’s (DOGE) 11.6%. This impressive performance has set its sights firmly on the next Fibonacci extension level, with potential for even higher gains in the long term. The question remains: could PEPE catalyze the next altcoin run?
Technical Indicators and Market Sentiment
The one-day chart has been bullish since early May, when prices breached the $0.00000796 resistance. In the past week, the imbalance left behind at $0.0000122 might be a short-term bearish target if prices seek liquidity. The 61.8% Fibonacci extension level at $0.0000168 is a critical point where selling pressure might elevate as PEPE holders realize profits. The RSI on the daily chart was at 72, underlining the strength of the past two weeks’ momentum. Additionally, the OBV was swiftly climbing higher, reflecting consistent buying volume. Despite the trading volume not skyrocketing like in late February, the consistency of the bulls in May is noteworthy.
Potential Retracement and Market Dynamics
The past month’s liquidation levels were clustered around the $0.000008 zone, marked on the 1-day price chart as a liquidity pool. The $0.00000645 and $0.000007 levels also have a significant pool of long liquidations in store, but these prices are 50% below the current market prices. A retracement to these zones might not occur yet, given the firmly bullish market sentiment behind PEPE. It could climb higher to entice more long positions with higher leverage from impatient bulls. Hence, a move to the Fibonacci extension at $0.0000168 is likely before any significant retracement.
Conclusion
In the event of a retracement, the $0.0000105-$0.0000103 area might repel the first wave of sellers before a deeper pullback. Traders should be prepared for the possibility that prices might not fall below $0.0000113 for many weeks, especially if Bitcoin (BTC) begins another move higher and takes PEPE along with it. Overall, PEPE’s recent performance and bullish momentum suggest further gains, but investors should remain cautious and watch for potential retracement levels.
