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PEPE Price Prediction: How Will Ongoing Market Volatility Affect Trading?

PEPE Price Prediction How Will Ongoing Market Volatility Affect Trading

Pepe (PEPE), a meme-based cryptocurrency, has recently faced significant price volatility. The token has witnessed a substantial drop, reflecting the broader market’s bearish sentiment. Key technical indicators and market metrics suggest a potential shift in trading activity, warranting close monitoring. 

Price Movement and Key Levels to Watch

PEPE’s current price is approximately $0.00001500, reflecting a 5.06% decline at press time. This marks a continuation of the downward momentum observed recently. The token faces immediate support near $0.00001450, a level where buyers previously intervened. A more critical support zone lies at $0.00001000, which historically served as a base for consolidation.

Source: Coinmarketcap

On the upside, the immediate resistance is at $0.00001600, a level that has rejected bullish attempts to rally. A stronger resistance level exists near $0.00002000, which carries psychological significance and aligns with prior price peaks. These levels are crucial in determining the token’s next moves, especially amidst current volatility.

Technical Indicators Highlight Bearish Momentum

PEPE/USD daily price chart, Source: Trading view

PEPE’s Relative Strength Index (RSI) is at 38.06, signaling bearish momentum and approaching oversold territory. If RSI drops to 30, a potential rebound might occur as oversold conditions typically attract buyers. 

The Moving Average Convergence Divergence (MACD) adds to the bearish narrative, with the MACD line below the signal line. The histogram further confirms selling pressure, emphasizing the need for caution.

Derivative Market Insights Reveal Declining Activity

Coinglass derivative market data paints a mixed picture for PEPE. Trading volume has plummeted by 36.44%, settling at $1.19 billion. Open interest has also declined by 1.72%, now at $455.70 million. These reductions suggest waning enthusiasm among traders, likely due to ongoing uncertainty.

Liquidation trends underline the dominance of long-position liquidations. Over the past 24 hours, $5.22 million in positions were liquidated, with longs accounting for $4.34 million. This imbalance highlights bearish dominance, as traders continue to close long positions amid price declines.

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