PEPE shows strong bullish bias as it approaches this resistance zone

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• PEPE witnessed an almost vertical rally over the past week
• Conditions could be overextended northward but it does not guarantee a deep retracement

Pepe [PEPE] rallied hard over the past week like many altcoins in the market. However, it was the meme coin that saw the highest gains among Dogecoin [DOGE] and Shiba Inu [SHIB]. FLOKI posted gains almost equaling PEPE in the past week.

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A previous analysis of PEPE price action by AMBCrypto drew attention to the fact that the token’s next large obstacle sat at $0.0000011 and $0.0000014. The former level has been flipped to support, will the latter follow the same route?

The bearish order block overhead could stall PEPE’s progress

Source: PEPE/USDT on TradingView

Crypto markets can be highly volatile, with meme coins sometimes especially so. PEPE rocketed upward and gained 102% over the past seven days and counting. The market structure on the daily chart was flipped bullishly on 23 October after the lower high at $0.00000085 was breached.

At press time, the Relative Strength Index (RSI) signaled heavily bullish momentum. The Chaikin Money Flow (CMF) showed a reading of +0.23 to underline strong capital inflow to the market. The On-Balance Volume (OBV) began to trend higher after its sideways movement in the previous two months.

Together, they reflected the recent PEPE gains were borne by genuine demand. The 1-day bearish order block at the $0.0000014 region could see the bulls rejected. A pullback to the former resistance at $0.00000101 could give a buying opportunity.

On-chain metrics suggested long-term holders could be taking profits

Source: Santiment

The Active Addresses count was rising steadily in the past week. The Social Dominance also ticked higher. Together they reflected positivity among network users and a growth in their numbers. Yet, the mean coin age saw a sharp dip. The 30-day Market Value to Realized Value (MVRV) ratio also climbed to highs not seen since early May.

Realistic or not, here’s PEPE’s market cap in BTC’s terms

This large thrust upward on the MVRV meant long-term holders would be likely to sell their PEPE tokens for a profit. The drop in mean coin age signaled that many holders have already begun to move their tokens. Therefore, a dip to $0.000001 or lower was possible.