Traders and analysts are closely watching PEPE Coin (PEPE) following a recent dip below a critical support level. While the drop led to a new September low, there is growing optimism for a substantial price recovery.
According to Captain Faibik, a cryptocurrency analyst, there are indications that the token could be gearing up for a significant rally in the fourth quarter of 2024.
His forecast suggests,
“$PEPE is still consolidating within the Bullish Symmetrical Triangle, and I remain optimistic about it…!! It appears poised for another +300% Bullish Rally in Q4.”
Currently, PEPE is trading at $0.057447, with a trading volume of over $1.1 billion in the last 24 hours, signaling a 5.03% increase.
Despite a 1.26% decrease over the past week, the market continues to watch eagerly for the token’s future trajectory.
Surge in short liquidation positions
The movement of PEPE’s price is intricately linked to Futures market activities, highlighted by the recent liquidation map provided by Coinglass. Short liquidation leverage outweighs long liquidation leverage significantly.
About 20 million USDT worth of short positions are in danger of liquidation if prices rise, indicating a substantial number of traders are anticipating further declines. This imbalance could lead to upward pressure, as an increase in price might trigger a series of short liquidations, potentially pushing the price higher.
Futures traders are advised to be vigilant, particularly due to the prevalence of short positions. A sudden upward movement could accelerate PEPE’s gains if liquidation thresholds are surpassed.
Transaction activity and market sentiment
Moreover, data from IntoTheBlock revealed fluctuations in large PEPE transactions between 2 September and 9 September. The peak in transaction activity occurred on 6 September, with 217 large transfers, while the lowest was observed on 3 September with only 80 transactions.
Within the last 24 hours, 103 large transactions were reported, indicating moderate market activity as traders await clearer signals on PEPE’s next steps.
Address data also shed light on the growing user base of PEPE, with the number of addresses reaching 3.18k as of 9 September, including 585 new addresses created in the past week.
Active addresses have increased by 6.54%, showcasing a rising interest in the token despite recent price challenges. On the flip side, the creation of new addresses has slowed by 13.84%, reflecting mixed market sentiment.
Crucial technical indicators – Resistance and momentum
PEPE’s daily chart indicates its attempts to recover from the recent price dip. Currently, it is trading just below two critical resistance levels: the 50-day EMA at 0.00000839 and the 100-day EMA at 0.00000897.
To confirm a bullish reversal, PEPE must breach these levels. Failure to do so could result in further price stagnation or a sustained downtrend.
As of now, the Relative Strength Index (RSI) sits at 46.55, indicating neutral momentum with a slight bearish bias.
PEPE is in a precarious position, especially with the MACD indicator signaling weakening bearish momentum. However, a potential bullish crossover in the MACD line could pave the way for a price upswing.