Traders bet on PEPE’s next move – Will the memecoin see a major shift?

• PEPE faced crucial resistance at $0.00001000, with an 80% surge potential if broken.
• Market sentiment showed mixed signs, with 70% of holders “Out of the Money.”

Pepe [PEPE] has been consolidating within a defined range, and traders are closely monitoring its next move. Recently, the token faced resistance and a slight 0.99% drop, trading at $0.0000009351 at press time. 

With key support and resistance levels in play, PEPE is poised for a potential breakout. If PEPE can breach these critical levels, a surge in price could follow, signaling the start of a new upward trend.

Can PEPE trigger a big move?

PEPE’s press time price was nearing the key resistance level at $0.00001000, which will be crucial for determining the next move. The token has formed a broadening wedge, a pattern that often leads to a breakout. 

If it successfully breaches the $0.00001000 resistance, PEPE can surge around 80%, with price targets ranging from $0.00001050 to $0.00001800. 

Therefore, PEPE could potentially reverse its recent downtrend and trigger bullish momentum. However, if PEPE fails to break through, it could test the $0.00000900 support level.

In addition, the RSI was 35.64 at press time, signaling that the market was neutral. This suggested that there was potential for both upward and downward movement. 

The next price action will likely depend on whether PEPE manages to break key resistance levels, with an upward breakout seeming the more probable scenario.

Source: TradingView

In/Out of the Money: What does the data say?

At press time, 70.33% of PEPE holders were “Out of the Money,” which meant that the majority of investors were holding positions below their purchase price.

This created a significant barrier, as many investors may sell to minimize losses if PEPE rises substantially. 

However, 24.66% of addresses were “In the Money,” which provided some stability. These investors are likely to hold their positions and contribute to supporting the price.

Therefore, if it moves past resistance, these holders could help fuel further upward momentum.

Source: IntoTheBlock

Total liquidations: A sign of market sentiment

As of the 19th of February, PEPE’s total liquidations amounted to $514.68K, with $254.45K in short positions and $260.23K in long positions. This showed more long positions being liquidated, indicating that traders were betting on a price rise.

A price breakout could force more traders to exit their positions, potentially adding buying pressure. The liquidations suggested volatility, but also increased bullish sentiment if resistance levels are broken.

Source: Coinglass

Rising interest?

The active addresses have reached 3,903, indicating moderate interest in the market. However, the transaction count has been rising steadily, moving from 3168 to 3,937. 

This upward trend in transaction activity suggested increasing market interest. Therefore, if PEPE sustains its breakout, more participants could fuel its price movement.

Source: Santiment

Conclusion: Is PEPE set for a breakout?

PEPE seems to be at a pivotal point, with key resistance levels being tested. If it manages to break the $0.00001000 resistance, the token could experience an 80% surge.

However, the large percentage of “Out of the Money” positions could hold back any significant price movement. 

Therefore, PEPE needs to break through resistance levels and attract more market participants to sustain the breakout. However, the breakout seems probable, but a solid push is still required.