Pepe Coin Price Struggles Amid Diverging Investor Sentiment
Pepe Coin’s recent price action has not mirrored the bullish momentum seen in other leading cryptocurrencies. Analysis of investor behavior reveals a market divided between bearish traders and bullish long-term investors, contributing to the stagnation. Despite securing a free listing on the upcoming Hong Kong-based HashKey exchange, PEPE remains under significant resistance, with its price hovering around $0.00000785 during the London trading session—marking a modest 1.3% increase over the past 24 hours.
Whales vs Traders: Where Will Pepe Coin’s Price Head Next?
The current plateau in Pepe Coin’s price can be attributed to a tug-of-war between large holders and retail traders. On one side, whales are accumulating PEPE, betting on a future price surge, while retail traders appear more bearish, as indicated by data from Coinglass.
According to the PEPE Crypto Derivatives Visualizer, traders have been closing their short positions for profit, as evidenced by a drop in open interest (OI) while the price has risen. Typically, when short positions are closed, long positions are expected to open, but another metric suggests a different narrative.
A side-by-side comparison of OI and cumulative volume delta (CVD) reveals both are declining. This trend indicates that long positions are also being closed, which could be a bearish signal for PEPE. Despite shorts closing profitably, the absence of new long positions implies caution among traders.
Conversely, large PEPE holders are doubling down on their investment. Data from Santiment shows a spike in whale activity over the past 48 hours, with increased transactions from whales holding over $5 million worth of PEPE (red spikes) and $100,000 net-worth whales (yellow spikes). Additionally, the rising blue histogram indicates an increase in active addresses, suggesting new users are entering the PEPE market.
These developments suggest that whales and new investors may anticipate a significant price movement, with the Pepe Coin price chart hinting at a potential 68% surge.
Key Resistance Levels: PEPE Needs to Surpass $0.00000835 to Turn Bullish
The Pepe Coin price chart currently shows the asset trading within a descending wedge pattern, often viewed as a bullish reversal signal, particularly if the price can break above the wedge’s resistance.
Currently, PEPE is facing resistance around $0.00000836, near the 200 EMA. A successful break above this level could complete a double bottom reversal pattern, potentially propelling the price by 68% to $0.00001200. Such a move would not only confirm the breakout but could also set the stage for further gains up to $0.00001800.
However, the extremely overbought Stochastic RSI at 95.50 suggests that PEPE might experience short-term selling pressure or a pullback before resuming its upward trend. This overbought condition could explain the hesitation among traders. Nevertheless, in strong uptrends, overbought indicators can persist for extended periods.
Should PEPE fail to break and sustain above the 200 EMA, the price could drop further to $0.00000700 or even lower, possibly breaching the falling wedge at $0.00000477. Such a scenario would invalidate the current bullish outlook, turning PEPE’s market sentiment bearish.
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