Why PEPE could dip below $0.0000105 despite 23% rally

Key Takeaways

Is the outlook bullish or bearish for PEPE?

In the short term, meaning over the next week or two, a bearish move is possible.

What is the next key level for the bulls and bears?

For the bulls, the $0.00001266 is the key resistance to overcome. For the bears, they will be targeting the local support levels at $$0.00001013 and $0.00000946 next.

Pepe [PEPE], the third-largest memecoin, recently saw a 23.3% rally that pushed its price up to the $0.00001266 resistance level. However, the momentum stalled before the token could sustain further gains.

In last week’s report, AMBCrypto noted that the breakout from the falling wedge could face resistance at this level. This has come to pass, and PEPE has since entered into a short-term bearish pattern.

Predicting PEPE’s next price move

Source: PEPE/USDT on TradingView

The descending triangle pattern (white) formed after the falling wedge breakout reached one of its price targets. This showed that buyers have limited power.

Moreover, the A/D indicator reflected this relative strength.

Having said that, some buying activity filled out the triangle over the past week. Still, this does not mean that the bulls were dominant.

The price action showed a bearish structure. A drop below $0.0000105 would be a signal to go short.

The Awesome Oscillator showed bearish momentum for PEPE. To reverse the bearishness at play, a move above the triangle pattern and a short-term bullish price structure must be established.

To do this, the $0.0000115 level should be flipped to support.

Heatmap points to downside pull

Source: CoinGlass

A bullish move did not appear likely, according to the Liquidation Heatmap. The magnetic zones of note were close to the price and south of it.

In fact, $0.00001 and $0.000009 appeared likely to attract the price.

By contrast, resistance sat higher at $0.0000117–$0.000012. Since this cluster was further away, traders might view downside tests as the more probable outcome in the coming sessions.

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