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PEPE bulls step in with $37 mln – But is the memecoin’s rally losing steam?
In recent days, PEPE has been on a tear, posting a cumulative gain of 3.22%. This upward momentum has not gone unnoticed by market participants, as spot traders have accumulated $37 million worth of the asset in just one week. While this may be viewed as a bullish sign, closer analysis reveals that bearish signals are now more prominent than ever before.
Firstly, PEPE appears to have formed an ascending pattern, which is typically associated with upward price action. However, the wicks at the resistance level suggest significant selling pressure, potentially leading to a pullback of around 11%. The death cross also plays into this narrative, as the 20-day SMA has crossed below the 200-day SMA, highlighting further bearish sentiment.
Furthermore, momentum indicators are waning in conjunction with decreasing trading volume. In spite of PEPE’s recent price increase by 1.49%, daily trading volume has decreased by a significant 36.4%. This divergence is often indicative of a weak rally that will struggle to maintain its upward trajectory.
Lastly, derivative traders have taken control of the market, as evidenced by the negative Funding Rate, which sits at -0.0097. Here, short sellers are essentially paying to hold their positions, further solidifying the notion that the memecoin’s rally may be losing steam.
Despite this bearish analysis, it is crucial to acknowledge the unwavering support of spot traders. As mentioned earlier, $37 million has been added to private wallets in just seven days, which could potentially slow down or even stop the asset’s decline entirely.
Source: https://ambcrypto.com/pepe-bulls-step-in-with-37-mln-but-is-the-memecoins-rally-losing-steam/
