Following a substantial price correction, the broader crypto market has shown signs of recovery. Notably, the well-known memecoin PEPE has exhibited a bullish pattern on its daily chart amidst these market movements.
Given the price rebound and the positive pattern identified, an expert has suggested the potential for a buy-the-dip opportunity.
Expert Recommendation for Seizing the Dip
As per the latest insight from InvestingHeaven on X (previously known as Twitter), PEPE is approaching a “buy-the-dip” zone as it nears the 50% Fibonacci retracement level. Traders often utilize the 50% retracement level when establishing long positions or going long on a particular asset due to its historical success rate.
Technical Analysis and Crucial Levels for PEPE
According to analysis by CryptoCrypto, PEPE is currently in the process of forming a symmetrical triangle pattern subsequent to breaking out from a descending trendline.
While PEPE has entered a narrow zone within the pattern, the likelihood of an imminent breakout in either direction remains high.
Market sentiment suggests a potential upside breakout for PEPE. If the memecoin manages to close a daily candle above the $0.0000111 mark, there is a strong possibility of a 20% surge, targeting the $0.0000132 level in the near future.
Furthermore, indicators like PEPE’s Relative Strength Index (RSI) and the 200-day Exponential Moving Average (EMA) support the notion of a forthcoming bullish trend.
Bullish On-Chain Metrics
The positive outlook for PEPE is reinforced by on-chain metrics, with trader sentiment leaning towards a bullish stance on the memecoin. Coinglass’s on-chain data indicates a Long/Short ratio of 1.039 at present, signaling strong bullish sentiment among traders.
Moreover, PEPE’s Futures Open Interest has exhibited an increase, rising by 4.3% over the past 24 hours and 2.3% in the last four hours. This uptrend in futures interest indicates that traders are expanding their positions as PEPE’s value recovers.
Key Liquidation Thresholds
Currently, major liquidation levels are situated around $0.0001019 on the downside and $0.00001051 on the upside, with traders holding significant leverage at these levels.
In the event of a breakout above the triangle pattern reaching the $0.00001051 level, around $407,910 worth of short positions are at risk of liquidation. Conversely, failure to breach this level and a drop to $0.00001019 may lead to liquidation of approximately $1.90 million worth of long positions.
Considering all these facets of on-chain data and technical analysis, it is evident that bulls are currently in control of the market, potentially paving the way for an upward rally in the near term.
Current Price Momentum
As of now, PEPE is trading near $0.00001024, reflecting a 1.5% increase over the past 24 hours. Concurrently, trading volume has surged by 8.9%, indicating heightened engagement from traders and investors as the market shows signs of recovery.