Pepe Coin's price remains cautiously optimistic after a recent 14% surge on August 20, which has positioned the meme coin for a potential 15% rally. However, futures trading data reveals a growing bearish sentiment among traders, putting this upward momentum at risk.
Futures Traders Pose a Challenge to Pepe Coin's Price
Despite being the third-largest meme coin on Ethereum by holder count, Pepe Coin is struggling to win over futures traders. Data from Coinglass shows that the funding rate for PEPE has dropped significantly in the last 24 hours, from 0.01% to 0.004%. This decline suggests that traders are increasingly shorting PEPE, despite the coin's relatively stable price, which has only decreased by 0.2%.
Additionally, the cumulative volume delta (CVD) for PEPE has fallen by 2.64%, and open interest (OI) has dropped by 10.13% over the same period. A decrease in both OI and CVD typically indicates that long positions are closing, which could lead to more short positions being opened—a bearish sign for Pepe Coin's price.
Can Pepe Coin Overcome the Bearish Pressure?
Despite the negative sentiment from futures traders, Pepe Coin's price chart indicates a potentially optimistic future. The coin appears to be following a small parabolic curve, which could push it above a key resistance level and potentially lead to a significant price increase.
Currently, PEPE is likely to encounter resistance around $0.00000900, a level where the price previously faced selling pressure. A more substantial resistance zone exists around $0.00001150, which could trigger stronger selling if reached.
On the technical front, PEPE is trading above both the 21 EMA and the 50 EMA, suggesting short-term bullish momentum. These moving averages are also curling upwards, further supporting the potential for continued price gains.
The Relative Strength Index (RSI) is at 55.22, indicating neutral conditions with a slight bullish bias. This suggests that there is still room for the price to rise before reaching overbought levels.
Key Levels to Watch for Pepe Coin
For Pepe Coin to continue its upward trajectory, it must hold above the current support level of $0.00000775. Maintaining this support could signal the beginning of a stronger uptrend, with the next target at $0.00000900.
However, if PEPE fails to hold above $0.00000775, it may be wise for traders to reconsider their positions, as this could indicate further downside or continued consolidation. In such a scenario, PEPE could find additional support around $0.00000720.
In summary, while Pepe Coin shows potential for a 15% rally, the bearish sentiment among futures traders presents a significant challenge. The coming days will be crucial in determining whether PEPE can defy expectations and continue its upward momentum.
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