Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
- PEPE’s higher time frame market structure was bullish.
- Funding rates were positive, despite the slight retrace at time of going to press.
The crypto market saw an impressive recovery in mid-October, with most altcoins posting double-digit gains. Memecoins also performed well. In particular, Pepe’s [PEPE] between October 16 and 22, the weekly performance was +12%.
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A week ago, AMBCrypto knocked projected the retest of the bullish zone at $0.00000060 and the shorting opportunity such a move presented.
Can late buyers take advantage of profits now that PEPE has cleared the $0.00000070 immediate roadblock?
PEPE turns major resistance into support
Source: PEPE/USDT on TradingView
At the time of writing, PEPE was attempting to reverse resistance and bearish OB of $0.00000069 – $0.00000072 (orange) for support. If the attempt is successful, bulls could look for a re-entry into the market at the resistance and support zone of $0.00000069 – $0.00000072.
The bullish target will be the bearish OB on the daily chart of $0.00000077 – $0.00000083 (red). A retest of the aforementioned roadblock could yield a potential gain of 13%.
However, a weakening below $0.00000069 – $0.00000072 will negate the bullish bias. In such a downside scenario, a retest of the bullish zone at $0.00000060 could be likely.
Meanwhile, the Relative Strength Index (RSI) has been on an upward trend, indicating massive buying pressure in recent days. But muted capital inflows could complicate solid bullish momentum, as evidenced by the near-zero Chaikin Money Flow (CMF) wobble.
Financing rates remained positive
Source: Coinglass
Short sellers have been trying to acquire openings in the last few hours before publication time, as evidenced by the declining Cumulative Volume Delta (CVD). However, the drop in Open Interest (OI) rates was not significant enough to warrant an outright impact on sellers.
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Furthermore, financing rates remained positive at the time of going to press, underscoring the positive market sentiment towards the assets.
Nevertheless, the subdued capital inflows could complicate bullish efforts if they weaken in the coming days. A drop below the breaker block of $0.00000069 – $0.00000072 voids the long setup.