Pepe [PEPE]: Will the Memecoin Overcome Retracement Levels or Face Another Price Slump?

  • The recent price action of Pepe (PEPE) has captivated the attention of crypto traders and analysts alike.
  • Market indicators have presented mixed signals, leaving traders uncertain about the memecoin’s next move.
  • Notably, on-chain data suggests potential for both a bullish breakout and a further price decline.

Discover the intricate details of Pepe’s price movements and market indicators, providing insight into potential future trends for this popular memecoin.

Defending Key Fibonacci Retracement Levels

In the latter half of May, Pepe (PEPE) faced significant selling pressure leading to a marked retracement. By mid-June, capital outflows became evident with the Chaikin Money Flow (CMF) falling below -0.05.

Many anticipated Pepe would decline further, potentially retracing gains made in mid-May to $0.0000089. However, bulls staunchly defended the 78.6% Fibonacci retracement level at $0.0000107, though they struggled to surpass the 50% retracement level at $0.000013.

Despite the CMF recovering above +0.05, the daily Relative Strength Index (RSI) remained around the neutral 50 mark, indicating a lack of momentum for a bullish trend.

Market Implications and Future Outlook

The struggle of Pepe to break past the 50% Fibonacci retracement level suggests a hesitant market sentiment. Traders should closely monitor capital flow indicators like the CMF and momentum signals from the RSI for clearer directional cues.

Potential PEPE Price Movements: Analyzing Liquidation Data

The liquidation heatmap over the last three months highlights a significant liquidity cluster in the $0.000008-$0.000009 range. This area could potentially act as a magnet, drawing prices down if selling pressure intensifies.

Conversely, if bulls manage to regain control, the next liquidity target might be around the $0.000018 range. The recent data points to a higher number of short positions compared to long ones, suggesting a potential short squeeze that could drive prices up to $0.0000122 and $0.0000134.

Conclusion

Pepe’s price action reflects a complex interplay of technical levels and market sentiment. Traders should remain vigilant, watching key indicators for signs of bullish or bearish trends. While the possibility of another price slump exists, a bullish breakout cannot be ruled out if market sentiment shifts favorably.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Trump Highlights Severe Trade Tensions Between U.S. and Europe Amid Heavy Taxes and Lawsuits

On June 28th, U.S. President Trump highlighted the complex...

Bitcoin Sees Massive 11,770 BTC Outflow from Major CEXs Including Coinbase Pro and Binance

According to the latest data from Coinglass, centralized exchanges...

Bitcoin Spot ETF Sees $2.214 Billion Net Inflow in U.S. as BlackRock Leads with $1.31 Billion

According to data from Farside Investors, the United States...

TRUMP Token Liquidity Pool Drains $6.77 Million in Major Withdrawal, Reports OnChain Lens

According to OnChain Lens data reported by COINOTAG News...

US Senate’s $4.2 Trillion Tax Plan Sparks Debate Ahead of Bitcoin Deadline

The U.S. Senate, under Republican control, has unveiled a...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img