Nov 28, 2024

6thTrade

n the past seven days, PEPE has dropped 9.4%. Two weeks ago, on November 13, it surged 47% in a single day, but buyers were unable to maintain the momentum. Weakening trading volume now suggests the potential for a deeper correction.

With Bitcoin [BTC] trending downward toward $90k and potentially falling further, PEPE traders should brace for heightened volatility. However, this could also present opportunities for buyers to enter at discounted levels.

Short-Term Prediction: Continued Dip

Technical Analysis:

On the daily chart, PEPE maintains a strong bullish structure despite recent retracements. Its impressive performance earlier in November left behind a significant fair value gap during its impulsive move on November 13, marked as a demand zone in the $0.00001615–$0.00001715 range.

This zone aligns with a bullish breaker block from May, increasing the likelihood that it will be defended.

  • Key Levels to Watch:

    • Demand Zone: $0.00001615–$0.00001715.

    • Lower Support: $0.00001216 if selling pressure intensifies.

Indicators:

  • RSI (Relative Strength Index):

    • The daily RSI remains above neutral 50, signaling bullish momentum despite the retracement.

  • OBV (On-Balance Volume):

    • The OBV has pulled back due to selling pressure over the past 11 days.

    • A continued decline in the OBV over the next 3–4 days could indicate sustained selling, potentially driving PEPE down to $0.00001216.

Despite the short-term dip, buyers are expected to defend the demand zone, keeping the long-term outlook intact.

Liquidation Heatmap: Signs of a Potential Bounce

Recent data from the liquidation heatmap highlights key liquidity zones:

  1. Upside Targets:

    • Clusters of liquidity at $0.0000188 and $0.0000208 could attract prices higher in the near term.

    • A broader bounce toward $0.000021 is also possible within the coming days.

  2. Downside Risks:

    • A dip to the $0.000017 region may occur as part of the liquidity sweep.

    • This aligns with the technical demand zone and would provide a solid base for a rebound.

Longer-Term Prospects:

If momentum strengthens, PEPE could target the $0.000023 region in the next week or two. This recovery will depend on Bitcoin stabilizing its short-term bearish trend.

Conclusion: Prepare for Volatility

Pepe's long-term outlook remains bullish, but short-term sentiment favors caution. Key points for traders:

  • Near-Term Downside: Be ready for a potential drop to $0.000017, offering an opportunity for accumulation.

  • Upside Potential: A rebound to $0.000021 or higher is likely if liquidity clusters are tested and defended.

  • Long-Term Target: Recovery to $0.000023 is achievable, contingent on broader market stability.

For traders, patience and a focus on critical levels are essential to navigating PEPE’s volatile price action.