PEPE: +13.9% in 24 hours, new rally in the works?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- 13.9% gains for PEPE hinted at a short-term rebound.
- Futures market reacted positively with an increase in Open Interest.
The massive euphoria around Pepe [PEPE] reached an all-time low, as its price sunk to $0.00000082 over the past 48 hours. However, a quick rebound off the support level and encouraging signals in the futures market suggested the possibility of a near-term recovery.
PEPE posted gains of 13.9% over the past 24 hours to send out strong signals of an imminent bullish reversal.
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As the crypto market continues to experience significant volatility and price swings occasioned by Bitcoin’s [BTC] dip under $25k before quickly rebounding to $25.5k, PEPE could take advantage to rally.
PEPE finds solid support structure at $0.00000084 level
PEPE’s huge decline since 13 May has seen the memecoin lose over 55% of its value. This flipped its market structure to bearish, as sellers took advantage of shorting opportunities at the break of support levels at $0.00000162 and $0.00000115.
The trendline (white) highlighted the several lows PEPE has made over the past month. However, recent price activity hinted at an imminent recovery. The key support level at $0.00000084 stood firm to halt the bearish downswing. This led to a 13.9% rebound in the last 24 hours.
This highlighted the significant buying pressure available at this level with the $0.00000084 support holding strong for the second time after an initial test on 12 June.
A bullish rally will see PEPE need to break and close above the trendline around the $0.00000100 price zone with further targets being to flip the $0.00000115 resistance to support. A recent price report highlighted the $0.00000115 price zone as a key level, due to its correlation with the 23.6 Fibonacci level.
Meanwhile, the Relative Strength Indicator (RSI) and On Balance Volume (OBV) flashed positive bullish signals on the four-hour timeframe. The RSI rose above the neutral 50 and stood at 54, as of press time. The OBV also experienced a slight uptick in volume to hint at backing for the bullish rally.
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Rise in Open Interest showed optimism among buyers
Buyers looked to be shifting the short-term momentum in the futures market. Data from Coinalyze on the one-hour timeframe showed that the Open Interest (OI) rose by 8.81 million between 14 June and 16 June. This aligned with PEPE’s bounce off the support level suggesting that market speculators were actively opening positions to ride the bullish wave.
The Spot CVD also surged within the same period to highlight the growing demand for PEPE. Increased bullish momentum for Bitcoin [BTC] could impact PEPE positively, as investors look to rally 2023’s best-performing memecoin.