PEPE bulls step in with $37 mln – But is the memecoin’s rally losing steam?
The post PEPE bulls step in with $37 mln – But is the memecoin’s rally losing steam? appeared on BitcoinEthereumNews.com.
PEPE has formed a bullish structure that could trigger a rally, supported by spot traders. However, technical indicators and derivative market metrics suggest that an 11% decline could be likely. Pepe [PEPE] has maintained a bullish trend since last week, posting a cumulative gain of 3.22%. While the asset has formed a bullish pattern indicating the potential for further upside, several other market signals don’t align with that outlook. AMBCrypto analyzed the key factors that could hinder a potential rally and those that support further upward movement. PEPE forms a bullish ascending pattern On the 4-hour chart, PEPE was trading within a bullish ascending triangle pattern, characterized by a horizontal resistance level and an ascending support line converging. Typically, when prices oscillate within this structure, a breakout to the upside often follows, breaching the resistance line. A close look at the chart below reveals that each time PEPE approaches this resistance level, it produces prominent wicks rather than full-bodied candlesticks. This behavior suggests strong selling pressure at the resistance level, which could trigger a pullback. But that’s not all. Additional metrics also point to increasing downward pressure. Source: TradingView Moreover, the formation of a death cross — where the 20-day SMA slipped below the 200-day SMA — adds to bearish sentiment. At the time of writing, the 20-day SMA crossed below the 200-day SMA, pushing the price toward the pattern’s support level. The Accumulation/Distribution (A/D) indicator also confirms this bearish trend, showing that the market has entered a distributive phase. In this phase, participants begin selling the asset, causing it to trend lower. Source: TradingView Momentum wanes as volume drops despite price uptick On top of that, volume dynamics showed fatigue. While PEPE rose 1.49% in the last 24 hours, trading volume fell by 36.4%. This Price-Volume divergence typically suggests…
Filed under: News - @ April 20, 2025 5:01 am