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Buy PEPE or wait? Here’s what price predictions are telling you

2min Read

Pepe surged by 20% in the last 24 hours, but some metrics signal overbought conditions. Will there be a reversal soon?

PEPE establishes a short-term range but here's why bulls could march higher

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  • PEPE saw steady demand in the spot markets throughout its rally.
  • Traders could see the H4 swing levels as range extremes.

Pepe [PEPE] saw a sharp pullback on the 5th of March alongside the rest of the crypto market. Bitcoin [BTC] reached its ATH in USD at $69k on that day and dropped to a low of $59k just a few hours later.

AMBCrypto reported that a whale withdrew $6.3 million worth of PEPE from a centralized exchange, Binance, on the 3rd of March. Alongside the technical indicators, this was a bullish sign for the memecoin.

PEPE and the range-formation on the lower timeframes

Pepe 12-hour chart

Source: PEPE/USDT on TradingView

The 12-hour chart above showed that the market structure remained strongly bullish. The swing low for the H12 timeframe was at $0.00000263, meaning the structure would remain bullish until prices fell below this level.

An examination of the 4-hour chart showed that the swing low at $0.00000495 is crucial for the bulls to defend. A PEPE drop below this mark would shift the market structure bearishly on the 4-hour timeframe.

Therefore, this swing low and the local high at $0.0000087 could be considered as the extremes of a short-term range and traded accordingly.

The RSI on the H12 chart began to fall lower as momentum slowed down, but it still showed a reading of 70 to signal overbought conditions.

It must be noted that this does not mean another pullback is imminent. The OBV also dipped lower over the past few days as selling pressure rose, but only made a dent on the gains made over the past ten days.

Assessing sentiment in the futures market

Pepe Coinalyze metrics

Source: Coinalyze

The Open Interest behind the meme coin has trended downward since the 4th of March. It has shot higher over the past 12 hours, rising from $60.15 million to $78 million at press time. This suggested that bullish conviction was hefty once more.

Is your portfolio green? Check the Pepe Profit Calculator

The spot CVD has also trended higher throughout PEPE’s rally. This metric has not slowed down, which showed that demand remained high. Therefore, more gains are expected.

To the north, the $0.000011 level was the next bullish target.

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


Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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