PEPE drops to key bullish zone – Will bulls defend it?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• PEPE struggled to clear the $0.00000190 price ceiling. 
• The recently accumulated tokens are yet to be moved.

Bitcoin’s [BTC] sharp reversal after hitting a new high of $31.8k negatively impacted Pepe [PEPE]. The meme coin dropped over 7% in the past 24 hours, trading at $0.00000162 at the time of writing. 

How much are 1,10,100 PEPE worth today? 

However, it has eased into a crucial bullish zone and could offer near-term bulls a lifeline if BTC doesn’t drop below $30k. 

Will this bullish zone hold?

Source: PEPE/USDT on TradingView

BTC’s price pump on 13 July saw it grace a new high of $31.8k, pulling up PEPE to aim at the recent price ceiling at $0.00000190. But PEPE faltered near the resistance, inviting short-sellers to seek gains towards immediate support of $0.00000150. 

When zoomed out on the daily chart, the above immediate support aligns with a bullish order block (OB) of $0.00000136 – $0.00000162 (cyan). So, the area could act as a bullish stronghold. It could allow bulls to inflict a corrective rebound targeting the local high of $0.00000190. 

But sellers could extend gains beyond the bullish zone if BTC drops below the $30k psychological level. In such a bearish scenario, $0.00000131 and $0.00000120 will be key interest levels. 

Meanwhile, the RSI (Relative Strength Index) retreated from the overbought zone and steadied near the neutral level. A rebound from the neutral level will signal increased buying pressure and leverage to bulls.

But the CMF (Chaikin Money Flow) breached below the zero mark. It denotes significant capital outflows from PEPE in the past few hours. 

Recently accumulated tokens were unmoved

Source: Santiment

According to Santiment, the 90-day Mean Coin Age metric has risen since early June, implying wide-network accumulation of PEPE in the same period.

In addition, the lack of sharp and massive drops suggests that most of the accumulated tokens are unmoved – a conviction by holders of further rally ahead. 

Read Pepe’s [PEPE] Price Prediction 2023-24

But the whales came out to play after PEPE hit the price ceiling on 14 July. The whale moves were also marked by short-term sell pressure, as shown by a spike in supply on exchanges.

Traders should track BTC price action to confirm whether the bullish zone will be breached.