Last month, Pepe Coin (PEPE) captured attention with consecutive all-time highs despite uncertain market conditions. However, following a recent recovery, PEPE has faced local resistance, indicating that the coin might establish a range. On-chain data reveals a gradual increase in selling pressure.
PEPE Coin Price Prospects
In the latter half of May, PEPE experienced higher sales volumes. By mid-June, the Chaikin Money Flow (CMF) indicator dropped below -0.05, suggesting a notable capital outflow. This hinted at a possible price decline in May, potentially lowering PEPE to $0.0000089, erasing prior gains.
Market bulls, however, have fiercely defended the $0.0000107 mark, representing a 78.6% retracement. Despite this, the 50% retracement level at $0.000013 was not upheld. Although the CMF indicator turned positive, the Relative Strength Index (RSI) stayed neutral around the 50 mark.
Will PEPE’s Price Decline?
The liquidity heatmap is essential for PEPE’s future movements. Data from the past three months identifies a significant liquidation zone between $0.000008 and $0.000009. The 50% Fibonacci retracement level acts as resistance against declining to this zone.
Liquidity in the market shifts based on investor positions. Should bulls maintain their strength and Bitcoin (BTC) performs well, PEPE might return to $0.000018. Recent data indicates short positions gaining ground over long positions, potentially signaling a short squeeze and a sharp price rise. Key liquidation zones for PEPE include $0.0000122 and $0.0000134.
Actionable Insights
– Monitor the CMF indicator for capital inflow or outflow signals.
– Watch for price movements around the $0.0000107 and $0.000013 levels.
– Keep an eye on the liquidity heatmap to identify potential liquidation zones.
– Consider short squeeze potential if short positions increase sharply.
In conclusion, PEPE faces local resistance after its recent recovery, with significant selling pressure and potential short squeezes influencing its future price movements.