I have received several requests to provide some additional analysis on Ichimoku. I'm happy to do that because Ichimoku is one of the most reliable indicator systems available. It can provide a lot of detailed information about the asset, trading signals and parameters to set up successful trades.
So let's dive into Pepe's Ichimoku state nationwide.
💡 In general, Ichimoku indicators do not support trade setups related to Pepe. However, there are bullish signs that could quickly change status.
1️⃣ . Let's start with the bullish side: Just four days ago, the so-called Base Line (blue) crossed the Conversion Line (Gray) to the upside. This is considered a bullish sign. However, since the crossover occurred below the cloud, this is a rather weak bullish signal.
2️⃣ Pepe is currently fighting to break above the Span B resistance line (red line) and the cloud at the same time (~0.000012). A close above this level would indicate further upward momentum, and the second level is the crossover mentioned earlier.
3️⃣ Let's discuss bearish signals. The futures cloud shows a bearish forecast (red cloud). Additionally, the space between the sides of the cloud is quite wide so we cannot expect a change anytime soon.
4️⃣ Based on the horizontal movement of the cloud, Pepe does not have a strong trend currently. To trade assets, you want a bullish or bearish cloud.
5️⃣ Often forgotten but very important. The so-called Chikou (orange line) is not "free" - meaning it is almost on par with the price candle. Again, when trading an asset, you want this indicator to be above/below the price.
🧵 Summary
Based on the missing trend and rather bearish outlook, I recommend trading Pepe now. To reassess this, we need a clear close to the cloud and Range B (which serves as key resistance).
