Pepe Price Analysis: Massive 200% Derivatives Surge Hints at Bullish Reversal

Pepe Price Analysis: Massive 200% Derivatives Surge Hints at Bullish Reversal
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Amidst the ongoing crypto market sell-off, Pepe’s (PEPE) price has been struggling to break past the resistance level of $0.00001449. 

The price dipped to an intra-day low of $0.00001165 before finding some support. If the bulls manage to reclaim control of the market, the next resistance levels to watch would be $0.00001400 and $0.00001600, respectively.

However, if the bears prevail, a bearish breakout could lead to a retest of the intra-day support level. At the time of writing, PEPE is trading at $0.00001311, marking a significant 9.4% decline over the last 24 hours.

Pepe Price Analysis: Massive 200% Derivatives Surge Hints at Bullish Reversal

Market Cap and Trading Volume Dynamics

During this downturn, PEPE’s market capitalization dropped by 9.33% to $5,522,050,107.

Interestingly, the 24-hour trading volume spiked by 123% to $1,966,755,000, indicating that traders are actively accumulating PEPE amid the price correction.

This surge in trading volume suggests strong market interest despite the prevailing negative sentiment.

Major Investment by Nascent

Amid the market slump, Nascent made a notable purchase of 447.67 billion PEPE tokens for $5.85 million, positioning themselves to benefit from potential market improvements.

This acquisition has made PEPE the top holding in the Nascent portfolio, already generating a profit of $262,000.

Sentiment and Network Growth

PEPE’s weighted sentiment has shifted to neutral, which isn’t particularly promising.

Additionally, the network growth rate has slowed down, another negative indicator that could imply the continuation of the bear market.

However, a positive aspect is the increase in the total number of holders, which might signal underlying bullish momentum.

Social Dominance and Holder Data

Social dominance for PEPE has returned to its previous lows, which paradoxically could be favorable for a potential future price pump. 

Meanwhile, the increasing number of holders points to growing interest in PEPE, hinting at possible bullish developments ahead.

Derivatives Data and Market Interest

The volume of PEPE derivatives has surged by over 200%, reflecting robust market interest.

Despite this, open interest has decreased by 22%, indicating a drop in the number of open contracts despite the surge in trading activity.

This trend is generally bearish, as it suggests traders might be taking profits or cutting their losses.

Short vs Long Positions

Data from Coinglass reveals that in the short term, short positions ($25.22K) are experiencing greater losses compared to long positions ($2.64K).

This could indicate that the market might be gearing up for a bullish reversal if long positions start to gain more traction.

Technical Indicators

The 1-day price chart shows that the Relative Strength Index (RSI) has crossed below the signal line, which is a bearish signal.

However, since the RSI is still above 50, there is potential for a bullish reversal, particularly with the increase in trading volume.

Similarly, the Moving Average Convergence Divergence (MACD) indicator plots below the signal line, indicating that bears currently dominate the market, as evidenced by the bearish crossover.

Traders should be prepared for the possibility that the negative trend might persist. The selling pressure is also rising, with the MACD histogram in the negative zone, suggesting further potential price declines.

Read Also: Dogecoin Technical Analysis: Bullish Surge Amid Market Volatility

Conclusion

In conclusion, while PEPE is currently experiencing a bearish trend, several indicators point to potential bullish signs.

The increase in trading volume, rise in the number of holders, and strong interest in PEPE derivatives all suggest that the market might see a positive shift.

However, traders should remain cautious and be prepared for continued volatility in the near term.

This analysis highlights the importance of monitoring key resistance and support levels, as well as keeping an eye on technical indicators for any signs of a trend reversal.

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Cryptocurrency investments are highly volatile and carry significant risk. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.

Pepe Price Analysis: Massive 200% Derivatives Surge Hints at Bullish Reversal

Techno Tropics

Techno Tropics is a passionate tech enthusiast and the voice behind it, a leading source for daily updates on AI, big data, analytics, and cryptocurrency. Stay tuned for the latest tech news and insightful analysis.
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