Pepe Coin price recently broke below a critical support level and showed signs of an impending reversal, giving a potential 25% buy signal.
The price of Pepe Coin broke below the monthly support structure over the weekend, hitting a new low for September. Historically, September has been a red month for cryptocurrencies, with occasional green years depending on other macro factors. The price of PEPE is down 6.69% for the month so far, but a potential rally of 25% could be imminent as the market structure signals a rebound. Additionally, influential figure Arthur Hayes has closed out his short position on the Bitcoin price, indicating that he expects a recovery in the market to be imminent.
Futures traders expect Pepe Coin prices to rise
Futures traders are an important factor in determining the direction of asset prices as they contribute the majority of liquidity and keep the market active through continued speculation.
As for the PEPE price, derivatives traders appear to believe that the asset has changed course and is trending upward, as data from Coinglass shows.
The PEPE exchange liquidation chart shows that the cumulative liquidation leverage of long positions is twice that of short positions.
This imbalance indicates that bullish sentiment dominates the market as traders expect further upside potential for the asset.
Furthermore, the Crypto Derivatives Visual Screener (CDVS) shows that most traders are buying Pepe Coin long positions. This can be seen from the positive growth in PEPE open interest (OI) and price over the past 24 hours.
These data suggest that traders expect PEPE prices to rise in the foreseeable future.
Additionally, according to data from IntoTheBlock, PEPE whale activity has also increased, with the number of large transactions reaching its highest level in the past two weeks, indicating that big players are moving funds.
In addition, large transaction net flows surged again on September 4, resulting in a net inflow of 84 billion PEPE (591,360 USD) into whale wallets.
Combined with negative exchange net flows, the increase in whale activity could indicate that large investors are taking advantage of the market downturn to snap up more PEPE tokens in anticipation of a price increase.
Pepe’s price has increased by 2.8% in the past 24 hours and is trading at $0.00000704.
Pepe prices hint at 25% rise, traders set to profit
The PEPE price broke out of the consolidation zone over the weekend beginning September 6th, but quickly reversed direction.
This is a classic sign of a run on liquidity by market makers. One month liquidity is in the demand zone, attracting market makers.
After absorbing this liquidity, the PEPE price may be ready to rebound to the supply zone and absorb more funds at that level. Liquidity drives the market, and prices always fluctuate where the capital pool is the largest.
PEPE price may face resistance around $0.000008 as it has been unable to break above this level recently. However, if there is enough buying pressure, the asset can break above $0.000009, which would be a 25% increase from the current price.
Conversely, if the Pepe Coin price fails to sustain above the current $0.000007 level, it could indicate market weakness and cause the crypto-asset to drop to lower support levels around $0.000006. This could invalidate the current bullish thesis.
Pepe Coin is heavily dependent on broader market movements, and currently, Bitcoin price is recovering. The entire cryptocurrency market is showing this, as the market cap has slightly increased by 0.1% in the past 24 hours.
