Pepe [PEPE] has experienced a decrease of 9.4% over the last week. Contrarily, just fourteen days ago, on November 13th, the coin surged by 47% within a single day. However, the momentum could not be sustained as dwindling trading volumes hinted at a potential correction for Pepe.
Amidst Bitcoin [BTC] also facing downward pressure towards $90k and potentially lower levels, cautious optimism is advised for Pepe traders. There might be lucrative buying opportunities in store over the upcoming weeks.
Pepe price outlook for the short-term: Expecting a slight downturn
Under the daily timeframe, PEPE showcases a predominantly bullish trend despite recent retracements over the past eleven days. Notably, Pepe’s performance throughout November has been noteworthy, leaving behind a significant fair value gap during the surge on November 13th, highlighted in white.
At the $0.000016 region, a robust demand zone emerged, coinciding with the bullish breaker block from May. This convergence at the $0.00001615-$0.00001715 level suggests a solid support area that could be defended by buyers.
Should Pepe witness further declines, a potential target could be the $0.00001216 mark. Despite this, technical indicators currently maintain a bullish stance, with the daily RSI above the 50 neutral level, reflecting buyer momentum. The OBV, although experiencing a recent downturn due to the past eleven days’ selling activity, reinforces the positive outlook.
Continued bearish pressure on the OBV over the next 3-4 days without a reversal could indicate prolonged selling, potentially leading to a Pepe drop to $0.000012. However, for now, bullish sentiments are expected to prevail, overriding short-term uncertainties.
Liquidation levels point towards a potential Pepe recovery soon
Analysis of the recent liquidation heatmap indicates that price levels around $0.0000188 and $0.0000208 are likely to act as magnets for an upward price movement. Notably, a concentration of liquidity is forming at $0.0000172.
A retest of the lower level might ensue following a sweep of the nearby liquidity at $0.0000188. While the momentum on lower timeframes leans bearish, the liquidation heatmap from the previous fortnight suggests a bounce towards $0.000021 in the near term, with a further target of $0.000023 over the following one to two weeks.
Sustaining this upward movement may necessitate Bitcoin stabilizing its short-term bearish trend. Current projections hint at a potential drop to $0.000017, coinciding with a liquidity pocket – aligning with the broader technical analysis.
Disclaimer: The views expressed in this article do not constitute financial advice; they are solely the perspectives of the author.