PEPE’s weekend pump hit +10% – Can it push forward?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- PEPE pumped +10% on the daily trading session on 22 September.
- Open Interest rates spiked, confirming demand in the derivatives segment.
Pepe [PEPE] fronted a surprise weekend pump of 14.5% on 22 September. But the memecoin’s further appreciation could face challenges after hitting a confluence of roadblocks. It begs the question, will it present sellers with opportunities?
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Can PEPE clear the 50-EMA and mid-range hurdles?
Since 11 September, PEPE oscillated between $0.00000060 – $0.00000070. The pump tipped PEPE to grace a high of $0.00000074, flipping the lower and higher timeframe market structures bullish.
But the pump hit a confluence of 50-EMA and the mid-range ($0.00000069) and could risk +10% gains. Although the weakening Bitcoin [BTC] could influence a price reversal, it wasn’t obvious, given a negative correlation in the past 30 days.
In the meantime, the CMF was above zero, indicating substantial capital inflows into the PEPE market. In addition, the RSI crossed the 50-mark, further underscoring the recent spike in buying pressure.
However, the downticks on both metrics could indicate buyers’ influence waned slightly. If the trend extends, PEPE could ease to $0.00000060 or $0.00000051, a potential 15% or 28% drop.
Conversely, bulls could hit $0.00000082 or the range-high ($0.00000094) if PEPE convincingly reclaims the mid-range.
Open Interest rates spiked
A spike in Open Interest rates followed the recent pump. It indicates a surge in demand for PEPE in the derivative market and a bullish bias.
How much is 1,10,100 PEPE worth today?
Apart from the +22% increase in Open Interest, the Futures market volume jumped +600% at press time.
The positive readings cemented further price surge was probable. So, tracking whether PEPE reclaims the mid-range is key to gauging the next price direction.