PEPE is approaching a pivotal juncture as it tests the $0.00001152 level, a critical intersection that could determine its next direction. A breakout above this key resistance could create renewed bullish momentum, sending the price higher. However, failure to exceed this level could result in a rejection, potentially sending the meme coin into a retracement phase.
As traders focus on this crucial resistance, this analysis will examine the likelihood of a breakout versus one potential rejection by analyzing the current price action of PEPE as it approaches the critical resistance level at $0.00001152. Key technical indicators, market sentiment and trading volume will be examined to provide a clearer picture of the next step.
PEPE Current Price Action
Currently, despite trading above the 100-day Simple Moving Average (SMA), the price of PEPE on the 4-hour chart is showing signs of a possible rejection. After reaching the key resistance level of $0.00001152, the price has started to decline, indicating that the positive move may weaken and a deeper retracement may occur as the same angle fails to quickly regain upward momentum.
Also, the Relative Strength Index (RSI) has fallen to 82% from a peak of 88%, indicating that buying pressure has subsided. Although the RSI is still in overbought territory, this decline suggests that bullish momentum is fading. Such a decline typically indicates that the asset could enter a consolidation phase or experience a potential price reprise, especially if the asset is struggling to break through key resistance levels.
On the daily chart, the crypto asset has shown strong upward movement, with multiple bullish candlesticks forming after breaking above the 100-day SMA. However, the current candlestick is showing a rejection wick, indicating increasing selling pressure. If this rejection continues, it could indicate a weakening of bullish strength, potentially leading to consolidation or a deeper retracement as traders gain.
Finally, the RSI on the 1-day chart has risen above 50% and now stands at 75%, reflecting strong bullish sentiment and dominant buying pressure. While this indicates continued price increases, proximity to the overbought area increases the price possibility of a decline as purchasing power decreases. A further rise could strengthen the uptrend, but a decline could indicate an impending correction or consolidation.
Market sentiment divided: what’s next for the Meme Coin?
PEPE’s recent price action has left the market market divided, with traders speculating between optimism about a breakout and caution about a possible rejection. Should the meme coin be rejected, it could return to the $0.00000766 level and possibly lower support levels.
However, a successful break above the resistance level at $0.00001152 could indicate increased buying momentum, potentially paving the way for further gains and targeting higher resistance levels such as $0.00001731 and above.
Featured image from iStock, chart from Tradingview.com