• PEPE’s short-term trend will largely depend on whether it can hold the $0.000018 to $0.00002 support area

  • Memecoin derivatives data highlights mixed market sentiment, with bulls slightly ahead

PEPE recently saw an exponential rise of over 250%, setting a new all-time high (ATH) of $0.0000284 on December 9. This explosive growth coincides with the broader memecoin supercycle and Bitcoin’s ongoing bullish sentiment on the charts.

At press time, PEPE is trading at $0.0000239, with its 20-day EMA providing strong support for recent corrections. A sustained rebound from this level could propel the price into a price discovery phase with the potential to set new ATHs.

Key levels to watch

Since reaching its all-time high, PEPE has been fluctuating between $0.000018 and $0.0000247, indicating a greater indecision in the market.

The key levels to watch out for are −

Support: The $0.000018 to $0.00002 range coincides with the 20-day EMA and acts as a key support area for buyers. A break below this range could invalidate the current bullish trend, exposing the coin to downside risks and a drop to $0.000015.

Resistance: A definitive close above the $0.000025 resistance could set the stage for buyers to push for the $0.0000284 ATH. A breakout of this level could start an uptrend that extends towards $0.00003.

Technical indicators suggest cautious optimism. At press time, the RSI hovers around 61 – a sign of mild bullish momentum. While it appears to be far from reaching overbought territory, the possibility of a consolidation phase around these press time levels cannot be ruled out.

The MACD has yet to stage a full bearish crossover, suggesting that sellers could face short-term pressure. However, traders should wait for the signal line to stabilize before predicting a trend reversal.

Derivatives data shows

Notably, trading volume has dropped by about 48.93% over the past day, indicating a decrease in market activity after the latest rally.

Open interest rose slightly by 0.38%, indicating cautious trader participation. The overall long/short ratio is just below 1, showing a fairly neutral trend. However, the ratio for OKX confirms a strong bullish edge as it is well above 3.

Total liquidations in 24 hours amounted to $8.74 million, of which $6.07 million were long liquidations and $2.68 million were short liquidations. The large amount of long liquidations suggests that the recent price correction caught over-leveraged long traders off guard.

Bitcoin’s ongoing bullish momentum could further catalyze the memecoin’s continued upside. However, traders should remain cautious as PEPE’s high volatility could lead to a sharp reversal.