- The 50% retracement level and the daily RSI indicated a possible range formation.
- Buying pressure is increasing and the liquidation heatmap is showing contrary signals.
PEPE has struggled to break above local resistance levels. Mimecoin has shown signs of forming a range, but according to a previous AMBCrypto report, a bullish chart pattern is also a viable scenario.
The report also added that on-chain metrics suggest selling pressure is likely to increase in the coming days.
For PEPE, we looked at liquidation level data along with technical analysis to see which path is more likely.
Key levels of long-term Fibonacci corrections are defended.
Source: PEPE/USDT on TradingView
Selling pressure began to build during the second half of May, and by mid-June the CMF had fallen below -0.05, signaling massive capital outflows.
At the time, the PEPE price was expected to retraceive the mid-May rally and drop to $0.0000089.
The bulls made sure that this did not happen and bravely defended the 78.6% correction level of $0.0000107. However, they were not strong enough to break through the 50% correction level of $0.000013.
The CMF also returned above the +0.05 level, but the daily RSI was slow, hovering around the neutral 50 mark and not yet signaling a bullish turn in momentum.
Should traders brace for a PEPE price crash?
Source: Highblock
Looking at the liquidation heatmap data for the last 3 months, we see a large concentration of liquidation levels in the $0.000008-$0.000009 area.
They were able to attract prices like a magnet, especially since the 50% Fibonacci correction level continued to act as a strong barrier.
There is no guarantee that all liquidity clusters will be visited. If the bulls settle in the coming weeks, the $0.000018 zone will be the next liquidity target.
Source: Highblock
Realistic or not, PEPE’s market cap in BTC terms is as follows:
The liquidation levels over the last two days showed that short positions were significantly larger than long positions, which meant that there was a possibility of a price bounce to pressure these short positions.
The next highest liquidity levels in the short term are $0.0000122 and $0.0000134.
Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.