Dip in PEPE's price potentially offers risky yet promising investment chance - Insights revealed
Let's Dive into the Retracement of PEPE
It's been four days since Pepe [PEPE] hunkered down in a range formation, and it looks like it's time to cash in on the short-term opportunity.
Remember our earlier analysis about PEPE running the risk of profit-taking? Well, the 61.8% Fibonacci retracement level at $0.0000145 has already repelled the bullish surge.
The memecoin had been making headways beyond long-term resistance levels in May, but it's momentum has slowed down lately. This is partly due to the sluggish progress of Bitcoin [BTC] as well. The altcoin market had been on a roll for a month, but it's seen some short-term hiccups.
The question is, how deep could this PEPE retracement go?
A Closer Look at the PEPE Situation
According to our analysis, the mid-range level of PEPE's range formation is at $0.0000138. However, the meme token has slipped beneath this support in recent hours. This area, together with the nearby liquidity pocket at $0.0000124-$0.0000127, could be the key target for PEPE's dip.
The RSI on the 4-hour chart shows a shift in momentum recently. It's dipped below the neutral 50 level, signaling that sellers are gaining the upper hand. Yet, the O Bhullion Volume (OBV) remains static near the local highs. This could mean that despite the downward trend, the selling pressure isn't overwhelming.
Similar to the OBV, the Open Interest has been steady over the past four days. This implies a lack of speculative interest in the memecoin. However, the Funding Rate is still positive, suggesting that Futures traders are reluctant to enter new positions, but short-selling isn't exactly popular either.
The 1-week liquidation map gives us a hint about the possible depth of the retracement. It highlights the aforementioned $0.0000124-$0.0000127 area as a nearby liquidity pocket. This zone is close to the short-term range mentioned earlier, making it highly likely that PEPE will deviate below the range in the coming hours.
Final Thoughts
Traders looking to jump aboard the PEPE train should exercise caution and manage their positions carefully. The bullish reversal isn't set in stone, but this dip could present a buying opportunity. Just remember, nothing in the crypto world is guaranteed!
Disclaimer: The information provided doesn't constitute financial, investment, trading, or any other type of advice; it is solely the writer's opinion
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- The current retracement of Pepe (PEPE) has been influenced by the sluggish progress of Bitcoin (BTC) and the altcoin market, making analysts wonder how deep the PEPE retracement could go.
- In the crypto finance world, an interesting question arises for PEPE investors: is the mid-range level at $0.0000138 still a viable support, considering PEPE has slipped beneath it in recent hours, with a key target for PEPE's dip being the nearby liquidity pocket at $0.0000124-$0.0000127?
- The RSI and Funding Rate indicators in the crypto market suggest that PEPE sellers are gaining momentum, but the steady Open Interest implies a lack of speculative interest, potentially presenting a buying opportunity for investors focusing on long-term investment in the crypto market.
