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Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.
- PEPE shows a strong upward trend after converting bearish OB to support.
- July’s monthly high is the next target for buyers.
Pepe (PEPE) ranks 4th in CoinMarketCap’s meme coin category, but has performed well in the market over the past three weeks. Despite the significant decline, PEPE has a solid bullish bias on its long-term price chart.
AMBCrypto’s technical analysis provides compelling reasons why PEPE is likely to continue its upward trend. However, some on-chain indicators raise doubts about the strength of the bullish trend.
A bullish breaker block should act as strong support.
Source: PEPE/USDT on TradingView
On PEPE’s daily price chart, the $0.00000014 area represents a bearish order block from mid-August. In the chart above, it is highlighted with a turquoise box. Moreover, since July, the $0.00000148 level has become significant.
In December, Meme Coin broke this resistance area due to intense buying pressure, as seen in the volume bars.
The price then retested this area as a support zone and bounced up to the $0.00000148 resistance level. This means that the bearish OB has converted into a bullish blocking block.
Fibonacci retracement levels (light yellow) indicate that the 50% and 61.8% levels have been tested and defended so far. Combined with a bullish block, it is likely that PEPE could move higher once again.
Indicators suggest that optimistic enthusiasm is waning.
Source: Santiment
Exchange supply compared to total trading volume has been decreasing since the end of October. This was a strong signal that market participants had been stockpiling PEPE and not moving it to CEX to sell.
However, the average age of money is also trending downward. This contrasts with previous indicators and suggested that PEPE movement between addresses is significant and portends selling pressure.
Realistic or not, PEPE’s market cap in BTC terms is:
Social volumes have risen slightly in recent weeks, but they have not trended upward along with prices.
Meanwhile, the MVRV ratio was very positive. This suggested that meme coins may be overvalued and that holders may be looking to liquidate some of their holdings to realize profits.