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 retreated to a crucial alignment of support and liquidity on the chart.
- Demand on the futures market fluctuated, but financing rates remained positive.
On Thursday, October 26, Pepe [PEPE] sellers re-entered the market after the meme coin hit a major roadblock at $0.00000130. The sellers’ move saw them enjoy 17% shorting profits after pushing PEPE to $0.00000112.
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A previous PEPE price forecast report of AMBCrypto believed that extended bullish momentum could flip the $0.00000140 overhead hurdle to support.
However, sellers overwhelmed the bulls at the hurdle and made +17% shorting gains during the retracement.
Will the bulls defend this support?
Source: PEPE/USDT on TradingView
PEPE retested the previous resistance and bearish order block (OB) $0.00000105 (cyan). The level corresponded to the liquidity on the chart of $0.00000106 – $0.00000112 (orange). As such, the alignment could act as a solid bullish zone and trigger a reversal to the upside.
If the reversal retests the overhead roadblock at $0.00000130 (red), buying against the liquidity could yield a +15% gain.
But an extremely bearish scenario that drags PEPE below the current support zone of $0.00000104 – $0.00000114 (cyan) will negate the bullish bias. Such a move could make a decline towards $0.00000085 likely.
Meanwhile, the meme coin still had significant buying pressure, as evidenced by its RSI in the overbought zone. Moreover, it recorded impressive capital inflows in recent days, as evidenced by the positive CMF.
Financing rates were positive, but demand fluctuated
Source: Coinalyse
In the futures market, demand for the meme coin decreased somewhat, as evidenced by a decline in open interest rates (OI).
How many Worth 1,10,100 PEPEs today?
But funding rates remained positive, underscoring the bullish sentiment of most players in the derivatives segment. Buyers’ leverage was further confirmed by the positive slope of the CVD (Cumulative Volume Delta).
Therefore, PEPE could recover if the support and liquidity on the chart above $0.00000110 align. The idea could accelerate if BTC stops posting losses or falls below $34,000.
