PEPE it is approaching a key period as it tests the $0.00001152 level, a key confluence that could shape the next path. A break above this key resistance could trigger renewed bullish momentum, pushing the price higher. However, failure to exceed this level can result in rejection, potentially pushing the meme coin into the rollback phase.
As traders focus on this key resistance, this analysis will examine the possibility of a breakout against this possible rejection by analyzing PEPE’s current price action as it approaches the critical resistance level of $0.00001152. Key technical indicators, market sentiment, and trading volume will be tested to give a clear idea about its next move.
PEPE Current Price Action
Currently, despite trading above the 100-day Simple Moving Average (SMA), PEPE price on the 4-hour chart is showing signs of possible rejection. After accessing the key resistance level of $0.00001152, the price has started to decline, indicating that the positive movement may be weak and a deep retracement may occur if meme coin failed to regain upward momentum soon.
Also, the Relative Strength Index (RSI) fell to 82% after rising 88%, indicating a cooling off in buying pressure. Although the RSI remains in overbought territory, this decline suggests that the bullish momentum may be fading. Such declines usually indicate that the stock may enter a consolidation phase or experience a potential price recovery, especially if the stock is struggling to break through key resistance levels.
On the daily chart, the crypto asset showed a strong upward movement with multiple candlesticks forming after crossing the 100-day SMA. However, the current candlestick is showing a wick of rejection, indicating rising selling pressure. If this rejection continues, it could signal a breakdown of bullish power, which could lead to consolidation or a deeper pullback as traders take profits.
Finally, on the 1-day chart, the RSI has risen above 50% and is now at 75%, indicating bullish sentiment and strong buying pressure. While this suggests continued price upside, the proximity of an overbought zone suggests the possibility of a reversal if buying weakens. A further uptrend could strengthen the uptrend, but a downtrend could indicate an upcoming correction or consolidation.
Market Sentiment Divided: What’s Next for Meme Coin?
PEPE’s recent price action has let it down the market split, with traders speculating between the prospect of a breakout and a warning about a potential rejection. If the meme coin does face rejection, it may start to pull back towards the $0.00000766 level and possible lower support levels.
However, a successful break above the $0.00001152 resistance level would indicate higher buying momentum, possibly setting the stage for further gains and targeting higher resistance levels, such as $0.00001731 and above.
Featured image from iStock, chart from Tradingview.com