Why Pepe bulls should brace for price drops next week

PEPE Price Analysis: Technical Indicators Suggest Potential Downtrend

PEPE's recent social and transaction volume metrics indicate caution for short-term buyers. However, the support levels below present potential buying opportunities with favorable risk-to-reward ratios.

Recent Price Movements

PEPE has been trading within a short-term range of $0.0000131 to $0.0000154. As of this writing, bulls are defending the mid-range support at $0.0000143.

Technical Analysis

• Technical indicators and order book suggest a potential 5-6% drop.
• A large clump of limit buy orders at $0.0000141 and $0.000014 could indicate support.
• However, the ratio of daily transaction volume in profit to loss has declined, suggesting decreased bullish sentiment.
• The decline in social volume and engagement indicates a loss of hype.
• The price action has broken below the mid-range support level, and the Directional Movement Index shows a lack of momentum.
• The CMF is rising, indicating capital inflows, which may counterbalance the bearish pressure.

Trading Strategy

• Swing traders and investors may consider waiting for a test of the $0.0000135-$0.000013 area before buying.
• The target would be the range high.
• Scalp traders should monitor lower timeframe market conditions for bullish triggers before retesting support levels.

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