PEPE Coin Faces Local Resistance After Recent Recovery

PEPE Coin Experiences Local Resistance Post-Recovery

Within the cryptocurrency market, PEPE (PEPE) has garnered significant attention recently. Despite ongoing market volatility, PEPE has experienced a series of record highs, leading to a resurgence of interest. However, following this period of growth, PEPE has encountered local resistance in its recovery efforts. This resistance suggests the possibility of a possible consolidation range for PEPE.

On-Chain Analysis Reveals Selling Pressure

On-chain data indicates a gradual increase in selling pressure over time. In the second half of May, the Chaikin Money Flow (CMF) indicator fell below -0.05, signaling a significant outflow of capital. This trend suggests that PEPE may have been poised for a correction, potentially retesting support levels as low as $0.0000089.

Market Sentiment and Price Action

However, market bulls have actively defended the $0.0000107 support level, which represents a 78.6% retracement from previous highs. The RSI indicator has remained relatively neutral, hovering around 50, indicating a lack of clear market sentiment.

Liquidity Heatmap Insights

The liquidity heatmap provides insights into potential future price movements for PEPE. Data from the past three months reveals a significant liquidation level between $0.000008 and $0.000009. This suggests that the 50% Fibonacci retracement level could act as resistance against any further declines to that level.

Potential Market Scenarios

The strength of market bulls and the performance of Bitcoin (BTC) will play a key role in determining the future direction of PEPE. If bulls maintain their presence and BTC performs favorably, the price could potentially revisit the $0.000018 level.

Alternatively, recent data indicates that short positions are gaining momentum over long positions, signaling the possibility of a short squeeze. This could result in a sharp price increase, with the first liquidation zones for PEPE being $0.0000122 and $0.0000134.

Conclusion

PEPE Coin is currently facing local resistance after its recent recovery. On-chain data suggests an increase in selling pressure, while the liquidity heatmap highlights potential support and resistance levels. The market sentiment remains neutral, with bulls and bears vying for control. The future price action of PEPE will depend on the strength of these opposing forces and the broader market conditions.