- Pepe [PEPE], the meme coin, remains in a consolidation phase but has demonstrated a bullish structure despite waning momentum and buy pressure.
- Recent analysis indicates a possible downward trend driven by liquidation levels, which could shift investor sentiment.
- A noteworthy detail is that many PEPE holders are currently in profit, and this dynamic could influence future market movements.
PEPE demonstrates slow bullish progress while buy pressure declines – Is a bearish trend on the horizon for the meme coin?
PEPE’s Consolidation Phase: Analyzing Market Position
In the past twelve days, PEPE has been in a consolidation phase, hovering above the $0.00001129 support level, but has struggled to break past the $0.000014 resistance. This period has allowed investors to analyze market conditions without significant fluctuations. Despite the consolidation, it is important to note that the majority of holders are currently in profit, which could provide a buffer against sharp downward movements.
Key Indicators: RSI and CMF Insights
The 12-hour relative strength index (RSI) for PEPE has shown a gradual decline since mid-July, currently sitting at a neutral 50.47. Meanwhile, the Chaikin Money Flow (CMF) has remained below +0.05 since late July, indicating that capital inflows are not yet significantly bullish. These indicators collectively highlight the ongoing consolidation of PEPE, with price levels between $0.0000113 and $0.0000127 setting the boundaries of this short-term range.
Liquidation Levels: Analyzing Potential Price Movement
Using the liquidation heatmap from Hyblock, it appears that the $0.000014 to $0.0000148 zone is densely packed with liquidation levels. This creates a magnetic zone likely to pull PEPE prices towards it. However, despite increasing liquidation levels in this area, a breakthrough has yet to materialize. To the south, the $0.000007 to $0.0000076 level serves as another critical target for traders, marking potential downside risks.
Implications of Short and Long Positions
The liquidity levels chart reveals that short positions currently outnumber long positions. This imbalance could lead to a short squeeze, driving prices upward to target short-term range highs of $0.0000123 to $0.0000126 within the next 48 hours. However, traders should remain cautious, as the overall chances of a breakout remain limited, particularly as Bitcoin [BTC] has recently retreated from the $69k resistance level, adding to market uncertainty.
Conclusion
In summary, while PEPE holds onto its bullish structure, the declining momentum and buy pressure, coupled with dense liquidation levels, signal potential challenges ahead. Investors should monitor these indicators closely, as they point toward a possible bearish trend. Nonetheless, with the majority of holders still in profit, PEPE’s market position remains relatively strong, albeit precarious.
