- PEPE’s price witnessed a setback after reaching a range-high, creating potential re-entry points for investors.
- As the buying pressure dwindles, tracking BTC and key Fibonacci levels could be pivotal for informed investment decisions.
Understanding PEPE’s Recent Price Dynamics
PEPE, a notable player in the crypto world, recently faced challenges in sustaining its upward price trajectory. In the third quarter of 2024, PEPE has seen a notable downward trend, aligning it with a broader trend of memecoins that faced a similar plight. A significant turn of events was the price rejection at the range-high of $0.00000085, which now prompts the question: where is the optimal entry point for potential buyers?
Key Indicators to Watch
PEPE’s price graph in September reflects an earnest attempt at recovery. The momentum was curtailed when the price hit the range-high. Delving deeper into technical analysis, a Fibonacci retracement tool, applied between the high of August and the most recent low, highlights a potential zone of interest. The 23% Fib level, marked at $0.00000081, mirrors the range-high. Additionally, this level resonates with the lows recorded in June, suggesting the area might possess bearish characteristics.
If the current downward momentum relents around the 0 Fib level and the mid-range, PEPE could redirect its trajectory towards the aforementioned bearish zone. It’s marked close to $0.00000060. However, if external factors like Bitcoin (BTC) undergo significant reversals in their recent achievements, PEPE could plummet further, making $0.00000040 a feasible point for bulls to recalibrate.
A look at the Relative Strength Index (RSI) reveals that the buying intensity reached its zenith and then receded upon hitting the range-high. Concurrently, the Chaikin Money Flow (CMF) index portrays that PEPE experienced notable capital influxes, indicating a positive trend.
Shifting Market Dynamics
Recent data from Coinalyze underscores that the Cumulative Volume Delta (CVD) is receding, signifying sellers are strengthening their market grip. Correspondingly, there was a noticeable dip in Open Interest (OI) rates. This provides an intriguing perspective: there’s been a reduced demand for PEPE in the Futures market recently.
However, not all indicators point south. The improved OI coupled with enduring positive funding rates insinuates that the bulls haven’t thrown in the towel yet. They might be eyeing a strategic re-entry.
For investors and traders, the confluence point around $0.00000060 emerges as a potential re-entry juncture. Yet, a holistic decision would involve monitoring BTC’s performance, ensuring alignment with broader market movements.
