Pepe Coin price remains resilient after a 14% surge during the brief market recovery on August 20. Following this uptick, PEPE briefly pulled back to a support zone, where it appears poised to rebound and potentially gain another 15%. Despite this optimistic outlook, futures trading data indicates that traders are largely betting against the meme coin. Over the past 24 hours, PEPE price has dipped slightly by 0.6%, settling at a critical support level. The key question now is whether the price of Pepe Coin will rise again and defy these bearish expectations.
Futures Traders are Pushing Pepe Coin Price Down
Despite being the third-largest meme coin on Ethereum by holder count, Pepe is having difficulty convincing traders that it is a good call. According to data from Coinglass, the PEPE funding rate dropped over the last 24 hours from 0.01% to 0.004%. However, the asset’s price has remained mostly constant, shedding just 0.2% of its value. This discrepancy suggests that futures traders are shorting PEPE.
Additionally, the cumulative volume delta of PEPE is negative and dropped by 2.64% over the last 24 hours. The open interest (OI) also concurrently dropped by 10.13%. When both OI and CVD decrease, it signifies that long positions are closing, potentially resulting in loss. When long positions close, traders tend to open Short positions, which can be a bearish indicator for the Pepe Coin price.
Despite the bearish sentiment from traders, the Pepe Coin chart shows an optimistic future for the meme coin.
PEPE Price Determined to Collect That 15%
Pepe coin price action shows the asset may follow a small parabolic curve upward that may catapult it above a key resistance level.
PEPE price will likely find resistance around $0.00000900, where the price previously encountered selling pressure. Above that, a more significant resistance zone lies around $0.00001150, which could see stronger selling if reached.
The price trades above both the 21 EMA and the 50 EMA, indicating short-term bullish momentum. The EMAs are also curling upwards, supporting the potential to continue moving higher.
The RSI is at 55.22, indicating neutral conditions but leaning towards bullish territory. This suggests there is room for the price to continue rising before reaching overbought levels.
If the Pepe coin price holds above the current support of $0.00000775, this could signal the start of a stronger uptrend, with the next target at 0.00000900.
If the price of Pepe fails to hold above 0.00000775, it might be prudent to exit and reassess, as this could indicate further downside or continued consolidation. PEPE may find further support lower around $0.00000720.
Frequently Asked Questions (FAQs)
The drop in PEPE’s futures funding rate from 0.01% to 0.004% shows traders are increasingly shorting the coin, betting on a price decline, despite its relatively stable price.
Investors should closely monitor the support level at $0.00000775 and the key resistance levels. If PEPE holds above the support, it could be a sign of an impending uptrend. However, failure to maintain this level may warrant reassessment and caution.
PEPE Coin could defy bearish expectations if it holds above key support and breaks resistance, with bullish momentum from EMAs and RSI supporting potential gains.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/15-pepe-coin-price-rally-under-threat-from-futures-traders/
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