- PEPE is facing key resistance levels that could confirm a 300% rally if bullish patterns continue
- Short positions that are at risk of being liquidated can trigger a huge price increase
PEPE coin (PEPE) was closely watched by traders and analysts alike after falling below a key support level. The decline set a new low for September, but optimism remains about a significant price recovery.
According to Captain Faibik, a crypto analyst, the token may be gearing up for a major rally in the fourth quarter of 2024.
His prediction suggests,
“$PEPE is still consolidating within the bullish symmetrical triangle and I am still bullish on it..!! It looks set for another +300% bullish rally in the fourth quarter.”
Source:
At the time of writing, PEPE was trading on $0.057447with a 24-hour trading volume of over $1.1 billion. This represented a price increase of 5.03% in the past 24 hours.
However, despite a decline of 1.26% in the past seven days, the market remains intrigued by the token’s future trajectory.
Increase in short liquidation positions
The price movement of PEPE is closely linked to market activity in the futures market, as shown in the latest liquidation chart of Mint glass. The cumulative short liquidation leverage is significantly higher than the long liquidation leverage.
Short positions totaling around 20 million USDT are at risk of being liquidated if the price rises, indicating that a large portion of traders are betting on further price declines. This imbalance could create upward pressure, as a price increase could trigger a cascade of short liquidations, potentially driving the price higher.
Source: Coinglass
So futures traders need to be careful. Especially since the strong presence of short positions means that a sudden upward move could accelerate gains for PEPE if the liquidation level is breached.
Transaction activity and market sentiment
Additionally, IntoTheBlock data showed fluctuations in large transactions involving PEPE between September 2 and September 9. The highest transaction activity occurred on September 6, with 217 large transfers, while on September 3 only 80 transactions took place.
103 major transactions have been registered in the past 24 hours. This indicated subdued market activity as traders waited for clearer signals for PEPE’s next move.
Source: IntoTheBlock
Address data also provided some insight into PEPE’s growing user base. As of September 9, the number of PEPE addresses reached 3,18,000, with 585 new addresses created in the past week.
In fact, active addresses rose 6.54%, reflecting growing interest in the token despite the recent price struggles. On the contrary, the creation of new addresses slowed by 13.84% – a sign of mixed market sentiment.
Source: IntoTheBlock
Key Technical Indicators – Resistance and Momentum
The daily chart of PEPE shows that the coin is trying to recover from the recent price drop. At the time of writing, it was trading just below two crucial resistance levels: the 50-day EMA at 0.00000839 and the 100-day EMA at 0.00000897.
For PEPE to confirm a bullish reversal, it must break above these levels. Failure to do so could lead to further price stagnation or a continued downward trend.
Source: Trading view
Meanwhile, the Relative Strength Index (RSI) stood at 46.55, indicating neutral momentum but slightly bearish leaning.
This could put PEPE in a delicate position, especially as the MACD indicator also points to weakening bearish momentum. However, the MACD line appeared to be approaching a bullish crossover, which if completed could support a potential price increase.
