Pepe Coin price has not been as bullish as other top-ranking cryptocurrencies because, from analysis of investor behavior, the market is divided between bearish traders and bullish long-term investors. While Pepe secured a free listing in the upcoming Hong Kong-based HashKey exchange, the asset is struggling under heavy resistance. The price of PEPE hovered around $0.00000785 during the London trading session, a 1.3% uptick in price over the last 24 hours.
Whales vs Traders – Where Will Pepe Coin Price Follow?
The current stagnation in Pepe Coin price stems from a struggle between large holders and retail traders. While whales are accumulating PEPE and anticipating a price rise, retail traders seem to be bearish on the asset, as data from Coinglass shows.
The PEPE Crypto Derivatives Visualizer shows that traders are closing their Short positions in profit since the open interest (OI) dropped while the price increased. Usually, when Shorts close, they tend to open Long positions, but a second metric suggests this may not be true.
A side-by-side comparison of the OI and cumulative volume delta (CVD) shows that both are dropping. When this happens, it signifies that long positions are being closed. This means that although Shorts are closing in profit, no new Long positions are opening, which can be a bearish indicator for the PEPE.
Conversely, PEPE large holders remain strong in their resolve to accumulate the meme coin. Data from Santiment shows an increase in whale activity over the last 48 hours. The red spikes show increased transactions from whales with more than $5 million worth of PEPE, while yellow spikes represent $100,000 net-worth whales. The blue rising histogram represents the active addresses, which have increased over the last 24 hours, signaling new users have entered the PEPE fold.
The whales and new users are on to something, as the Pepe Coin price chart hints at the possibility of a 68% surge in price in the future.
PEPE Needs to Beat $0.00000835 to Turn Bullish
The Pepe Coin price chart shows the asset is in a descending wedge pattern, generally considered a bullish reversal signal, especially if the price breaks above the wedge’s resistance.
The price of Pepe coin is currently experiencing resistance at $0.00000836 near the 200 EMA. If it breaks above that, PEPE price may complete a double bottom reversal pattern that catapults it 68% to $0.00001200, which would also double as a breakout and potentially set up the price for further gains to $0.00001800.
The extremely overbought Stochastic RSI at 95.50 suggests that the price may face short-term selling pressure or a potential pullback before moving higher. This may explain why traders are shying away from the meme coin. However, during strong uptrends, overbought conditions can persist for extended periods.
If the PEPE fails to break and hold above the 200 EMA, it may drop further downward to $0.00000700 and potentially even lower below the falling wedge at $0.00000477. This would invalidate the current bullish thesis and render PEPE bearish.
The post Pepe Coin Price Flashes a Bullish Signal with 68% Upside Potential appeared first on CoinGape.
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