Crypto enthusiasts and traders alike have been closely monitoring the recent meteoric rise of the meme cryptocurrency, PEPE. This digital asset has seen a remarkable growth this month, with more and more exchanges beginning to list it. On March 5th, the coin hit an all-time high of $0.0000049 before retracting for a correction phase. While some may view this retracement with skepticism, others see it as an opportunity for price sustainability confirmation at higher levels and a potential entry point for interested traders.
The current correction phase remains above the 50% Fibonacci retracement level, suggesting that the bullish momentum is still healthy and can prolong the price rally. A possible bullish breakout from the flag pattern indicates a potential long entry opportunity for traders, with an intraday trading volume of $1.42 billion, marking a remarkable 292.5% gain.
However, not everything is without potential pitfalls. The high wick rejection at the new all-time high of $0.0000049 in the 4-hour time frame chart signals exhausted bullish momentum. This has resulted in a price decline of nearly 32%, bringing the PEPE price down to $0.0000030. While this pullback remains above the 50% Fibonacci level, it indicates that the overall market trend is bullish, but not without the possibility for further corrections.
In the hourly chart, the PEPE coin showcases a flag pattern formation. A slight upswing in price has led to a bullish breakout from the pattern’s resistance trendline, suggesting a high possibility of upcoming recovery. If the coin’s price remains sustainable above the breached trendline, PEPE could see a 45% increase to challenge the all-time high ceiling once more. Nevertheless, if the price breaks below the trendline, this bullish thesis may be invalidated.
Technical indicators such as the Exponential Moving Average (EMA) and Relative Strength Index (RSI) offer further insight into PEPE’s prospects. The 20-day EMA in the hourly chart provides excellent dynamic support for buyers during occasional pullbacks, and the RSI slope above the midline (50%) indicates that market sentiment remains positive.
In summary, PEPE’s spot price of $0.00000306 showcases a bearish trend with medium volatility. Its resistance levels lie at $0.0000038 and $0.0000045, while support levels are found at $0.0000027 and $0.0000023. As always, it is essential to conduct thorough market research before investing in any cryptocurrencies, as personal opinions and market conditions may vary. Crypto enthusiasts should keep a close eye on this developing story and make well-informed decisions to minimize any potential financial loss.
Source: Coingape
