Excitement in the market surrounding the Pepe [PEPE] token is on the rise, fueled by a significant $2 million acquisition by a large investor at $0.00001899.
This development has boosted confidence in the future prospects of the token, even as PEPE witnesses a slight decline. Currently, the token is being traded at $0.0000192, marking a 3.93% decrease over the past 24 hours.
Despite the slight pullback, traders are closely monitoring the pivotal levels of PEPE and its capability to resume its upward trend.
PEPE: Is a Rebound Likely?
After breaking out from a prolonged downtrend pattern known as a falling wedge, PEPE surged to challenge the crucial resistance level at $0.00002597.
Following this upswing, the token retraced back to the vital support region at $0.00001714, coinciding with the 0.786 Fibonacci retracement level.
This retracement, despite its sharp nature, is a common occurrence post a significant breakout and could potentially pave the way for further upward momentum.
If PEPE manages to hold above the support zone, it may reclaim $0.00002000 as a base to launch another breakout attempt towards higher levels.
Conversely, a failure to maintain this level could expose the token to further downside movement towards $0.00001600.
An in-depth examination of Fibonacci retracement levels indicates that the immediate resistance for PEPE is at $0.00002200, followed by a major resistance level at $0.00002597.
These levels have been crucial pivot points in recent times, and a successful recapture of them could signal a continuation of the bullish trend.
On the flip side, a breach below $0.00001714 might invalidate the bullish scenario, leading to caution among traders.
Bullish Indicators Uphold Optimism
On-chain indicators also paint a positive outlook for PEPE. The net network growth has surged by 5.58%, with large transactions witnessing a 10.99% increase, indicating heightened interest from significant market players.
Although the “In the Money” metric indicates a minor bearish sentiment at -5.61%, the overall outlook remains predominantly bullish. These cues instill hope for a sustained rally if the technical groundwork remains intact.
Liquidations Highlight Bullish Control
Analysis of liquidation data reveals that $1.25 million worth of long positions were liquidated in comparison to $795,000 in short positions, suggesting prevailing bearish pressure.
However, the considerable liquidation of short positions earlier during the week underscores the volatility and the potential for swift sentiment reversals.
Hence, traders are vigilant for any signs indicating a resurgence of bullish dominance.
Can PEPE Sustain Its Upward Momentum?
PEPE’s combination of significant whale accumulation, positive on-chain signals, and critical technical levels hints towards the token’s potential to resume its upward trajectory. However, maintaining levels above $0.00001714 remains pivotal.
If this support level holds, PEPE could be well-positioned to challenge $0.00002200 and potentially reclaim $0.00002597, paving the way for new record highs.