- Pepe has reached its Bollinger band Mid-Range, which could cause an excessive outbreak in the coming sessions.
- Pepe’s chances of strong rally can limit the diverse sentiment between spot and futures markets.
Pepe [PEPE] In the past month, it seemed to take a corrective phase after increasing 20%. In the past week alone, Pepe dropped by 8.88%, weighed due to renewed sales pressure.
Market analysis shows that this decrease is part of a corrective phase, and it will probably detect a new movement, which contributes to the existing bullish sentiment.
Pepe could come back to the advantage
Pepe has exchanged in the middle range of the Bollinger band on the Daily Chart. This level can act as a support that feeds an outbreak or as a resistance that prevents further rally.
To determine how Pepe will probably respond to this level, Ambcrypto has assessed his most recent behavior in the same zone.
The last time that the memecoin traded in the middle range of the Bollinger tires (as characterized by the orange circle), it was active on the top. This observation implies that Pepe will probably bounce of this level, which means that the losses of the past week may be losses.
Source: TradingView
Interestingly, the liquidity inflow in Pepe remains increased, as indicated by the Money Flow Index (MFI). The MFI measures the inflow and outflow of liquidity in an active.
When the index reads above 50, it reflects the inflow of healthy liquidity into the active. At the time of the press, the Reading was 72.01, suggesting that Pepe’s upward trend could be inflamed by this strong liquidity support.
A great resistance to the bow
Further analysis shows that a price fall is possible if the Memecoin meeting comes in overhead resistance.
If it continues its upward movement, it will probably introduce an offer zone that can activate a price cascade.
Source: TradingView
If the market momentum remains strong, Pepe could break this supply zone and expand its rally. However, if the sales pressure builds up before Pepe gets an upward traction, the price will probably fall further.
There are three important support levels to watch, $ 0.00000734, $ 0.00000645 and $ 0.00000578. Pepe could try a rebound to the advantage on each of these levels.
Mixed sentiment is still left
The market remains divided on the likely price direction for Pepe.
On the one hand, traders lean on the Futures market Bullish, such as shown Due to the rising open interest weighted financing interest.
In the last 24 hours this metric rose to 0.0121%, a considerably high level associated with bullish market activity. The simple interpretation is that most futures contracts that are currently open are long positions.
Source: Coinglass
Surprisingly, spot traders have sold.
On the other hand, spot traders were not so convinced. They loaded $ 2.65 million to Pepe at the time of writing – a sharp pivot after a few days of buying activities.
If this sales trend continues, Pepe could see a sharp drop to lower regions marked on the graph.
Ultimately, the sentiment for the next major market movement must make a decision, decisively shift in one direction.