Investors in Pepe (PEPE) are closely monitoring the cryptocurrency’s performance, as it struggles to break through a local resistance level. Recent technical analysis suggests the possibility of a range formation, but a bullish chart pattern remains a viable scenario, as reported by AMBCrypto.
On-chain metrics indicate a potential rise in selling pressure in the near future, prompting a closer look at liquidation levels data alongside technical analysis to determine the likely path for PEPE.
During a retracement in the second half of May, selling pressure intensified, with the Chaikin Money Flow (CMF) falling below -0.05 in mid-June, signaling significant capital outflows. Despite initial predictions of a retracement to $0.0000089, bulls managed to defend the 78.6% retracement level at $0.0000107. However, they struggled to push past the 50% retracement level at $0.000013, with the daily Relative Strength Index (RSI) showing sluggish movement around the neutral 50 mark.
In light of recent liquidation heatmap data, it is noted that the $0.000008-$0.000009 zone has attracted significant attention due to a cluster of liquidation levels. The presence of the 50% Fib retracement level as a strong barrier further adds to the uncertainty surrounding PEPE’s price movements.
Looking ahead, traders are advised to remain cautious as short positions outnumber long positions, potentially leading to a price bounce to squeeze these positions. Key liquidity pockets in the short term are identified at $0.0000122 and $0.0000134.
In conclusion, the future trajectory of PEPE remains uncertain, with various technical indicators and on-chain metrics pointing to both bullish and bearish scenarios. As investors navigate the volatile cryptocurrency market, thorough analysis and risk management are crucial to making informed trading decisions.