Pepe Coin price broke below a monthly support structure over the weekend, establishing a new low for September. Historically, September has been a red month for crypto, with occasional green years depending on other macro factors. So far, PEPE’s price is down 6.69% for the month, but a potential rally of 25% could be on the horizon as the market structure signals a rebound. Additionally, influential figure Arthur Hayes has closed his Bitcoin price short position, suggesting he anticipates an upcoming market recovery.
Futures Traders Anticipate Pepe Coin Price Rally
Futures traders are an important factor in determining the direction the price of an asset takes, as they contribute the majority of the liquidity and keep the markets alive through continuous speculation.
For PEPE price, derivatives traders seem convinced the asset has changed course and is headed upward, as data from Coinglass suggests.
The PEPE exchange liquidation map shows twice as much cumulative Long liquidation leverage as Shorts.
This imbalance shows bullish sentiment dominates the market because traders anticipate further upside potential for the asset.
Additionally, the Crypto Derivatives Visual Screener (CDVS) shows the majority of traders entering Long on Pepe Coin. This can be seen by how the PEPE open interest (OI) and price have had positive increments over the last 24 hours.
This data suggests traders anticipate PEPE prices to increase in the foreseeable future.
Further, PEPE whale activity also increased, with the number of large transactions hitting the highest level in the last two weeks, according to data from IntoTheBlock, signaling big players are moving funds around.
Additionally, another spike in large transaction netflow on September 4 resulted in a net positive inflow of 84 billion PEPE ($591,360) into whales’ wallets.
Combined with negative exchange net flows, the increase in whale activity may signal that large holders are taking advantage of the declining market to scoop up more PEPE tokens in anticipation of a price increase.
Pepe price increased by 2.8% in the last 24 hours to trade at $0.00000704.
Traders to Make Bank As Pepe Price Hints 25% Surge
PEPE price broke out of a consolidation zone over the weekend beginning September 6 but quickly reversed direction.
This is a classic sign of a run on liquidity by market makers. A month’s worth of liquidity was sitting at the demand zone, which attracted market makers.
After scooping this liquidity, the PEPE price may be preparing to rally to the supply zone and collect even more money at that level. Liquidity drives the markets, and prices will always move where there is the largest pool of funds.
PEPE price may find resistance around $0.000008 as it has been unable to break above this level recently. However, with enough buying pressure, the asset can break through to test $0.000009, a 25% increase from the current price.
Conversely, if the Pepe Coin price fails to sustain above the current price of $0.000007, it may signal market weakness and result in the crypto asset falling to lower support levels around $0.000006. This could invalidate the current bullish thesis.
Pepe Coin relies greatly on the broader market movements to move, and currently, the Bitcoin price is recovering. The entire crypto market shows this, as the market cap slightly increased by 0.1% in the last 24 hours.
Frequently Asked Questions (FAQs)
Historically, September has been a difficult month for the crypto market overall, often resulting in downward trends. Pepe Coin has followed this trend, dropping by 6.69% for the month so far.
Open interest (OI) and price increments for PEPE have risen in tandem over the last 24 hours, reinforcing the belief that traders are positioning themselves for a price rally. This increased activity in Long positions points to strong buying momentum.
Based on the current bullish signals and futures data, there’s a potential for Pepe Coin to rise by 25% in the short term. However, as with any cryptocurrency, risks remain, and it’s important to monitor key resistance levels and broader market trends.
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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/pepe-coin-price-just-flashed-a-25-buy-signal-is-it-time-to-long-pepe/
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