PEPE gains 18% in a day to break out past local highs
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Market structure and Open Interest showed bulls had control of the market
- Breakout traders and late longs must be prepared for a retracement, but demand and momentum have been strongly bullish
At the time of writing, PEPE traded just above its recent local high at $0.00000179. This level saw PEPE bulls rejected on 23 June. A week of retracement later, the bulls were back and forced gains of 20%.
Realistic or not, here’s PEPE’s market cap in BTC’s terms
The fight for memecoin market share has been heating up as another entrant dove in just a few days ago. Could this ignite further interest in PEPE and the other meme coins and drive the rally higher?
Structure shifted in favor of bulls again before PEPE surged higher
The market structure on the 6-hour shifted bearish briefly when it sank below a higher low at $0.00000145. But just two days after that, the market structure was bullish once more. The OBV also climbed higher, suggesting that genuine demand was behind the rally.
The RSI showed bullish momentum as well. The 50% retracement level at $0.00000135 was almost tested before PEPE’s rally. This highlighted that the 23.6% and 61.8% extension levels at $0.000002 and $0.00000233 are likely to be tested as well.
Bitcoin [BTC] has not yet broken out past the $30.8k-resistance. If such a move materializes, it could further galvanize PEPE bulls. The other memecoins, Dogecoin [DOGE] and Shiba Inu [SHIB], traded just beneath their resistance levels from 23 June.
Open Interest chart showed speculator sentiment remained strong
The OI chart from Coinglass revealed that the rally in PEPE prices was accompanied by a rise in Open Interest. This showed that in the past few days the speculators in the Futures market were convinced of a bullish move and willing to bid the asset.
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Alongside the OBV, this was another strong piece of evidence that capital flow was directed into the market. The indicators and price action underlined further gains were likely, but a BTC rejection from the $30.8k-zone could shift sentiment towards the sellers.