- Cryptocurrency appraiser Ali Martinez examines sell signals for PEPE at TD Sequential.
- GameStop’s resurgent stock helped PEPE hit a new all-time high on May 14, 2024.
- PEPE’s stardom in the derivatives sector is waning, with trading volumes falling more than 40% each day.
Amid this month’s cryptocurrency rollercoaster, the frog-themed Pepe Coin (PEPE) emerged victorious, gaining 92% over the past 30 days. PEPE hit a new all-time high of $0.00001151 on May 14, retracing more than 13% of this price milestone. However, experienced cryptocurrency analyst Ali Martinez believes that PEPE’s backtracking is not over yet.
Veteran cryptocurrency trader posted sophisticated technical analysis based on Tom Demark Sequential (TD) predictions. This technical indicator determines the length of the ongoing price trend and indicates the highs or lows along the way. For PEPE, Ali Martinez explained that two sell signals were identified on the 3-day chart.
While this forecast is based on the aggressive 13 and green 9 candles as shown in the graph above, Martinez also noted that an additional bearish divergence has formed between PEPE’s price performance and the Relative Strength Index (RSI). Further investigation by DailyCoin shows that the RSI is still above 55, slightly below the overbought side.
The main levels of PEPE you should pay attention to are:
While a bearish divergence occurs when a cryptocurrency’s bullish stance slows down, a discrepancy between higher and lower highs can also indicate a sharp price decline. In the case of PEPE, the fluctuation range is also large depending on the selling pressure between integrated orders. Fortunately for PEPE, the consolidated liquidity ledger points out a $13 million difference between PEPE bids and PEPE sales in the last 24 hours.
Meanwhile, PEPE coin analyst 0xV is examining PEPE’s most recent daily close and highest recorded in March 2024. On technical cryptocurrency charts, the wick, often called the tail, determines the area where the price of a coin fluctuates in relation to its opening price.
According to 0xV, the potential for PEPE to create another leg of the bull market largely depends on the price range between $0.000010 and $0.000011. However, following today’s 4% cryptocurrency market correction, PEPE has fallen below this price range, trading at $0.000009972 at press time. On the other hand, a narrowing Bollinger Band indicates that PEPE price fluctuations are likely to subside before a sharp price trend reversal occurs.
On the flip side
- The price decline may be partly due to reduced interest in PEPE in the derivatives market, as PEPE enters a market correction, down 4% in the last 24 hours.
- According to CoinGlass, the liquidation of over $1.19 million in long positions caused PEPE’s derivatives trading volume to plummet 40% in one day, now reaching $2.07 billion.
Why This Matters
Despite massive price fluctuations, the PEPE token was the best performer among the top 30 altcoins by annual global market capitalization, returning a return of 541% over a 365-day period.
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