PEPE Coin Encounters Local Resistance

PEPE Coin Faces Local Resistance Amidst Unfavorable Market Conditions

In the volatile cryptocurrency market, Pepe Coin (PEPE) had a remarkable rise last month, hitting consecutive all-time highs. However, market analysts are observing a recent shift in sentiment.

On-Chain Data Reveals Selling Pressure

On-chain metrics indicate that selling pressure on PEPE has been increasing since mid-May, with higher sales volumes recorded. The Chaikin Money Flow (CMF) indicator has dropped below -0.05, signaling a notable capital outflow.

Market Dynamics and Key Levels

Market bulls have been defending the $0.0000107 support level, representing a 78.6% retracement. However, they have been unable to sustain the 50% retracement level at $0.000013. While the CMF indicator has turned positive, the Relative Strength Index (RSI) remains neutral around 50, suggesting mixed momentum.

Liquidity Heatmap Analysis

The liquidity heatmap is crucial for understanding PEPE's potential price trajectory. Data from the past three months reveals a significant liquidation zone between $0.000008 and $0.000009. The 50% Fibonacci retracement level acts as resistance against further declines towards this zone.

Short Squeeze Potential

Recent data indicates a rise in short positions relative to long positions. This could potentially signal a short squeeze, which may result in a sharp price increase. Key liquidation zones for PEPE include $0.0000122 and $0.0000134.

Actionable Insights

• Monitor the CMF indicator for signs of capital inflow/outflow.
• Observe price movements around the $0.0000107 and $0.000013 levels.
• Track the liquidity heatmap to identify potential liquidation zones.
• Consider short squeeze potential if short positions increase significantly.

In summary, PEPE's recent rally has encountered local resistance due to selling pressure and potential short squeezes. Market participants should closely monitor these factors to inform their trading decisions.