- PEPE has a bullish structure, but momentum and buying pressure have waned significantly.
- The data on liquidation levels showed that a bearish trend could emerge soon.
Pepe [PEPE] has been in a consolidation phase for the past twelve days. It traded above the USD 0.00001129 support level but could not get past the USD 0.000014 resistance.
A recent analysis of the meme coin found that a majority of holders made profits.
Analysis of the liquidation levels showed that traders can expect a price increase in the coming days, provided Bitcoin [BTC] does not initiate a short-term downtrend.
The air resistance was respected
Source: PEPE/USDT on TradingView
On the 12-hour chart, the RSI has been slowly declining since July 15. At the time of writing it stood at 50.47, indicating that momentum was neutral.
The CMF has been below +0.05 since July 25, indicating that capital flows have not been significantly bullish.
Together they highlighted the consolidation of PEPE in the past two weeks. The $0.0000113 and $0.0000127 levels marked the extremes of a short-term range.
Due to declining trading volume, PEPE has not yet shown signs of a breakout.
The magnetic zone around $0.000014 should be of interest to traders
When analyzing Pepe’s liquidation heatmap, AMBCrypto noted that the $0.000014-$0.0000148 zone was densely populated with liquidation levels. This magnetic zone is likely to pull prices closer.
The consolidation over the past two weeks has led to an increase in the number of liquidations in this area. This made it more likely to be swept in the next two weeks.
To the south, the $0.000007-$0.0000076 zone is a target.
The graph of liquidity levels showed that there were more short positions than long positions. This could lead to a short squeeze, or a price increase to prey on short sellers.
The $0.0000123-$0.0000126 levels, or short-term highs, were a feasible bullish target for the next 48 hours.
Realistic or not, here is the market cap of PEPE in terms of BTC
Overall, PEPE could see a move as high as $0.000014 before a bearish reversal occurs. The chances of a breakout seem slim, especially now that BTC has pulled back from the $69k resistance in the past few hours.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.