PEPE Poised for Potential Rally – Conditions Apply
The current position of Pepe [PEPE] hints at a possible upcoming rally, contingent on certain factors. The recent performance of this memecoin has highlighted a struggle to sustain the bullish momentum it achieved back in September.
Could a renewed push by the bulls reignite that earlier momentum?
Despite relinquishing its September gains, PEPE still shows signs of a bullish bias in the short term. The memecoin has recently revisited its short-term ascending support line, a key feature of its performance during the bullish phase in September.
As of the latest data, PEPE was trading at $0.00000.935, reflecting a 2.63% increase in the last 24 hours. This uptrend suggests that the short-term ascending trend line is still in effect, leading to a positive market response following the retest.
The most recent pullback drove PEPE to its 50% RSI level. Interestingly, the RSI indicator has hinted at a potential pivot and has managed to stay slightly above this critical level.
This once again confirms the persistence of the bullish momentum in the market.
These factors emphasize the significance of PEPE’s current positioning, with potential for further upside if demand can be bolstered.
Conversely, a lack of demand coupled with a strong bearish push could lead to further price weakness.
Evaluating the Demand Dynamics of PEPE
One critical aspect to consider is the activity of whales, who often hold substantial influence over price movements. Data on large holder flow indicates a decrease in whale activity since the beginning of October.
On the 9th of October, the data revealed that large holder addresses received 2.96 trillion PEPE, while 3.17 trillion PEPE were moved out.
Though outflows slightly outweighed inflows in the data, recent price movements have shown a minor uptick, suggesting a potential shift in this pattern.
On-chain volume has also witnessed a slowdown over the past three days, with selling volume dominating, mirroring the observed sell pressure during this period.
However, the latest figures indicate that buy volume for PEPE has exceeded sell volume.
Despite these insights, a definitive indication of the price direction remains elusive at this point.
As the weekend nears, any significant changes in trading volumes could offer more clarity on the future direction. Keeping a close watch on whale activity is advised for potential insights.