Pepe (PEPE), the meme-inspired cryptocurrency, has been grappling with a key resistance level, hinting at a potential trading range formation. However, a bullish breakout remains a possibility, according to a recent AMBCrypto report. While technical indicators offer mixed signals, on-chain data suggests a rise in selling pressure in the near future.
Defending the Key Fib Level
May’s retracement saw escalating selling pressure, with the Chaikin Money Flow (CMF) indicator dipping below -0.05 in mid-June, signifying significant capital outflows. This fueled expectations of a price drop to $0.0000089, retesting the entire May rally. However, bulls stepped in, valiantly defending the crucial 78.6% Fibonacci retracement level at $0.0000107. Despite their efforts, overcoming the 50% retracement hurdle at $0.000013 proved elusive. The daily RSI also remained sluggish, hovering around the neutral 50 mark, failing to signal a clear shift in momentum.
Liquidation Levels and Price Magnets
Examining liquidation data alongside technical analysis offers clues about PEPE‘s future trajectory. The liquidation heatmap from the past three months reveals a significant cluster of liquidation levels around the $0.000008–$0.000009 zone. These levels could act as magnets, pulling the price towards them, especially with the 50% Fib level posing a strong barrier. However, reaching every liquidity cluster isn’t guaranteed. If bulls gain control in the coming weeks, the next target would be the $0.000018 liquidity zone.
Short Squeeze Potential
Data from the past two days’ liquidations indicates a dominance of short positions over long positions. This suggests a potential price surge to squeeze these short positions. The immediate short-term liquidity pockets lie at $0.0000122 and $0.0000134.
Important Disclaimer
The information provided here does not constitute financial, investment, trading, or any other form of advice. It solely reflects the writer’s opinion.