- PEPE’s derivative data hinted at hike in traders’ optimism, but a break above $0.00000780 is necessary for a significant price rally
- While short-term technical indicators flashed ‘buy’, PEPE’s long-term bullish momentum remains questionable
Popular memecoin PEPE may be poised for a bullish rally on the back of renewed trader optimism in the speculative memecoin market. With multiple Break of Structure (BOS) and Change of Character (CHoCH) confirmations, PEPE is now eyeing a break above a key resistance level.
In fact, the memecoin’s price surged by 5.02%, with its trading volume gaining by 39.88% in the last 24 hours too. Hence, the question – Is PEPE ready for a bull rally?
PEPE’s price confirmations
Looking at the 4-hour chart, PEPE seemed to have multiple BOS and CHoCH confirmations – Indicative of a bullish price reversal. This means that the memecoin has been pushing to reclaim key support zones, while finally testing the $0.00000780 resistance zone too.
According to BlockchainBaller on CoinMarketCap, a breakout above this level could see PEPE begin a significant price uptrend in the mid-term.
At the time of writing, PEPE was trading at $0.00000762, with its Relative Strength Index (RSI) at 50 (neutral zone) hinting at more buying potential.
Source: CoinMarketCap
PEPE’s short-term technical indicators, MACD (12,26) and moving averages, flashed ‘buy.’
On the contrary, long-term moving averages flashed ‘sell’ – A sign that bears still have some influence.
PEPE derivatives data reveal significant bullish sentiment
The memecoin’s Open Interest climbed by 8.47% in the last 24 hours, according to Coinglass. The Open Interest (OI)-Weighted Funding Rate also turned positive over the past 48 hours – Indicative of renewed trader optimism.
Source: Coinglass
Following a surge in trading volume (39.88%), traders could be positioning themselves for a rally. Especially as PEPE gears up for a breakout above its key resistance. This may be evidenced by multiple BOS and CHoCH signals.
The long-short ratio had a reading of 1.41 – A sign that buyers have been dominating the market.
Source: Coinank
However, market volatility remains a concern in the memecoin market due to its highly speculative nature, as is evidenced by its fluctuating long-short ratio.
This means PEPE’s long-term bullish momentum remains undetermined.
Is a rally coming up?
PEPE’s BOS and CHoCH confirmations, alongside on-chain data, signaled that a rally may be on the horizon. With PEPE’s RSI sitting in a neutral zone, PEPE is not overbought yet. This means the market could expect more buyers in the short term.
The memecoin’s price action near the resistance zone could determine its next direction. A breakout above $0.00000780 could see PEPE rally towards $0.00000850 in the mid-term.
