PEPE: How the meme coin could see +15% gains
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- PEPE retreated to a crucial alignment of support and liquidity on the chart.
- Demand fluctuated in the Futures market, but funding rates remained positive.
On Thursday, 26 October, Pepe [PEPE] sellers re-entered the market after the meme coin hit a key roadblock at $0.00000130. The sellers’ move saw them enjoy 17% shorting gains after pushing PEPE to $0.00000112.
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A previous PEPE price prediction report by AMBCrypto opined that an extended bullish momentum could flip the overhead hurdle of $0.00000140 to support.
However, sellers overwhelmed bulls at the hurdle and grabbed +17% shorting gains during the retracement.
Will bulls defend this support?
PEPE retested the previous resistance and bearish order block (OB) $0.00000105 (cyan). The level aligned with the liquidity on the chart of $0.00000106 – $0.00000112 (orange). As such, the alignment could act as a solid bullish zone and front a reversal to the upside.
If the reversal retests the overhead roadblock at $0.00000130 (red), buying at the liquidity could offer a +15% gain.
But an extremely bearish scenario that drags PEPE below the current support zone of $0.00000104 – $0.00000114 (cyan) will invalidate the bullish bias. Such a move could make a drop towards $0.00000085 likely.
Meanwhile, the meme coin still had substantial buying pressure, as shown by RSI in the overbought zone. In addition, it recorded impressive capital inflows in the past few days, as demonstrated by the positive CMF.
Funding rates were positive, but demand fluctuated
In the Futures market, demand for the meme coin eased slightly, as shown by a drop in Open Interest (OI) rates.
How much are 1,10,100 PEPEs worth today?
But funding rates remained positive and underscored the bullish sentiment held by most players in the derivative segment. The buyers’ leverage was further confirmed by the positive slope of the CVD (Cumulative Volume Delta).
So, PEPE could rebound at the alignment of support and liquidity on the chart above $0.00000110. The idea could be accelerated if BTC doesn’t post more losses or drop below $34k.