PEPE cryptocurrency has garnered attention from traders and analysts following a recent trend where it broke through a key support level, setting a new low for September. Despite this, many are optimistic about a potential significant price rebound.
One crypto analyst, Captain Faibik, has suggested that the token might be gearing up for a substantial rally in the fourth quarter of 2024.
As of the latest update, PEPE was valued at $0.057447, witnessing a 5.03% increase in the last 24 hours, with a trading volume exceeding $1.1 billion. Although there was a minor 1.26% decrease over the past week, the market remains curious about the coin’s future trajectory.
Surge in Short Liquidation Positions
The movement of PEPE’s price appears to be closely linked to activities in the Futures market, as indicated by the recent liquidation chart from Coinglass. The total leverage from short liquidations outweighs that of long positions significantly.
With around 20 million USDT in short positions at risk of liquidation in case of a price surge, a considerable segment of traders is betting on further price declines. This imbalance could lead to upward pressure, potentially triggering a cascade of short liquidations and propelling the price higher.
Futures traders are advised to exercise caution, particularly given the strong presence of short positions. An abrupt upward movement might expedite PEPE’s gains if liquidation thresholds are surpassed.
Transaction Activity and Market Sentiment
According to IntoTheBlock data, there were fluctuations in large transactions involving PEPE between 2 September and 9 September, with the highest activity recorded on 6 September, witnessing 217 substantial transfers. In contrast, only 80 transactions occurred on 3 September.
In the past 24 hours, there were 103 significant transactions, indicating moderate market activity as traders awaited clearer signals regarding PEPE’s future direction.
Moreover, address data shed light on PEPE’s expanding user base, with the number of PEPE addresses reaching 3.18k by 9 September, including 585 new addresses created over the past week. The rise in active addresses by 6.54% indicates a growing interest in the token despite recent price challenges, though new address creation has slowed by 13.84%, reflecting mixed market sentiment.
Crucial Technical Indicators – Resistance and Momentum
PEPE’s daily chart depicts the coin’s efforts to recover from its recent price drop, with its current position being just below two critical resistance levels: the 50-day EMA at 0.00000839 and the 100-day EMA at 0.00000897.
To signal a bullish reversal, PEPE must break above these levels; otherwise, further price stagnation or a prolonged downward trend may occur.
While the Relative Strength Index (RSI) stands at 46.55, showing neutral momentum with a slight bearish bias, the MACD indicator also indicates waning bearish momentum. Notably, the MACD line is nearing a bullish crossover, which, if confirmed, could support a potential price upswing.