CoinWired reported that Pepe Coin has experienced a significant 8% price surge over the past seven days, including a notable 9% increase in the past 24 hours. Despite initial hopes of a recovery, widespread bearish signals indicate that maintaining an upward trajectory remains challenging.
The relative strength index (RSI) is currently slightly below the 50 level, indicating uncertain price momentum and an inability to confirm a trend reversal. Additionally, the momentum oscillation indicator (AO) also supports this bearish sentiment. The AO remains below its average zero level, indicating continued favorability for the bearish trend.
This is consistent with the recent breach of the support trendline for PEPE, which had previously provided stability at a key technical level.
Profit-taking and selling pressure
Investor behavior indicates an increase in profit-taking, exacerbating the bearish trend. IntoTheBlock data shows that approximately 26% of active addresses holding PEPE tokens are profitable. As investors seek to capitalize on gains, this has led to increased selling pressure, further hindering price rebounds.
Additionally, despite recent market downturns, 77.58% of PEPE holders remain profitable. Many of these tokens were purchased in the range of $0.000002 to $0.000003, with PEPE showing a significant upward trend beginning in late February. This historical context highlights the potential for a market rebound if sentiment improves.
The inflow/outflow money map (IOMAP) reflects this selling pressure, with many addresses purchasing PEPE at an average of $0.000011. If the price approaches this level, many investors may choose to sell to recoup their initial investment, forming a potentially significant resistance area that could impede upward momentum.
According to the technical analysis report provided by altFINS, we have gained a deeper understanding of PEPE’s market position:
Bullish flag pattern:
PEPE is currently in a bullish flag consolidation phase, which typically signals a potential upward movement after a pullback.
Upside potential:
Analysis shows that PEPE’s potential upside targets are $0.000013 (an 11% increase) and even $0.000015 (a 28% increase). It is recommended to set stop-loss at $0.0000103 to control risk.
Trend assessment:
Although the short-term trend is downward and the medium-term trend is neutral, the long-term trend remains strongly upward, providing strong support for an overall bullish outlook.
Momentum indicator observation:
Although the MACD line has crossed below the MACD signal line, indicating short-term bearish momentum, the RSI-14 indicator indicates that PEPE is currently neither overbought nor oversold, suggesting price uncertainty in the direction of fluctuations.
Key levels:
Recent support is near $0.0000091, while resistance is distributed between $0.000013 and $0.000015.
These technical indicators show that PEPE exhibits some potential for upward movement in the current market environment, and suggest that investors closely monitor market dynamics to develop appropriate trading strategies.
Market outlook
The current market dynamics surrounding PEPE undoubtedly provide traders with an attractive investment opportunity. The coin’s ability to maintain its support level amidst divergent trends with Bitcoin indicates significant upward potential, especially if Bitcoin rebounds as expected by many analysts. However, in the current uncertain market environment, investors should still exercise caution. Recent market downturns and Bitcoin’s brief dip below $61,000 due to the Mt. Gox event serve as reminders that the market still contains many variables.
In the crypto industry, if you want to seize the next bullish opportunity, you need to have a high-quality circle, where everyone can gather for warmth and maintain insight. If you’re alone, looking around and finding no one, it’s actually very difficult to persist in this industry.
