On August 5, after Bitcoin (BTC) fell to $48,800, Pepe (PEPE) visited the 78.6% Fibonacci retracement level, which is $0.0000068. Unlike its stronger competitors, PEPE’s sharp decline worried its investors. Some meme coins even regained their price levels before the downtrend seen in the first week of August, but this was not the case for PEPE.
PEPE Coin Comments
PEPE’s 3-day weighted sentiment indicator started to show a positive outlook in the last few days. This indicated that social media interactions were increasingly moving in a positive direction. During this period, inactive circulation remained relatively flat. The rising average cryptocurrency age reflected more accumulation starting last week.
The calm appearance of inactive circulation and the increasing average cryptocurrency age could be an important tool for PEPE’s recovery.
On the other hand, despite a similar rising MCA indicator in July, it was seen that the meme coin could not surpass the $0.000013 resistance zone again. This level has been serving as resistance since the first week of June.
Will PEPE Rise Again?
PEPE’s daily outlook indicated a rise. For this outlook to be permanent, the price needs to close above $0.000009. The MACD indicator also showed signs that the downtrend was weakening, and a noticeable increase in OBV was observed.
The greatest optimism for investors during this period was that PEPE clearly defended the $0.00000678 level, which served as a significant Fibonacci retracement. This region was the clearest indication that the bulls had not completely given up despite losing strength.
A 7-day retrospective review showed a high liquidation zone between $0.0000085 and $0.0000094. Although investors are currently enjoying the upward movement, a possible rise to the mentioned level could result in a process leading to significant liquidation of short positions.
Therefore, investors may soon see a price jump resulting from sweeping this liquidity. If the demand in the market is not reflected in OBV and other indicators, it may not be possible to talk about the permanence of the rise.
In a scenario where the upward trend continues in line with the market, PEPE’s price could again exceed $0.00001, and an important level could be regained after August 5.
