PEPE has attracted investors’ attention over the past few days, especially as it is trading close to strong support levels, which could see a price reversal if its nascent bullish momentum leads the price to surge higher. In fact, such a move could drive a sharp rally on the charts.
Since May 28, the price of PEPE has recorded a 33.53% correction to retest the $0.000015 support level. Since then, PEPE has been consolidating near the support level for the past 6 days with the bullish momentum gradually increasing. The price action is also following the ascending trendline.
The Exponential Moving Averages (EMA 50/100) appear to be providing additional support as the EMA 50 is trending above the EMA 100 and the PEPE is trading above the EMA.
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Moreover, the Stochastic RSI is pointing towards slightly overbought territory, suggesting a sustained uptrend after a brief consolidation. This confluence between support levels and indicators has made PEPE a meme for investors eyeing long positions.
PEPE volume, open interest on USD exchanges flash bullish signals
AMBCrypto further analyzed trading volume, open interest on USD exchanges, and total number of holders on Santiment. PEPE’s trading volume showed several peaks that correlated with increases in open interest. This correlation highlights the performance of PEPE trading activity and interest at this important support level.
The total number of holders also appears to be rising steadily, reflecting the expansion of investor confidence and the accumulation of PEPE tokens. Under these market sentiments, key support levels may prove to be strongholds for market bulls.
What must be added to the liquidity dynamics?
Aggregate order book liquidity delta shows that buy orders outnumber sell orders near key support levels - a sign of strong strengthening buying interest. This liquidity imbalance also means that buyers are arming themselves to defend the support level from any further depreciation. Hence, the bullish bias.
Is PEPE in a position to reverse?
Technical indicators, rising holder counts, and positive liquidity all seem to give the market a bullish outlook. Investors should keep a close eye on PEPE as it fluctuates around support levels and prices could rise.
However, if the price breaks below the support, a retest of $0.000009 is imminent.
