PEPE’s Derivative Data Hints at Hike in Traders’ Optimism

Key Resistance Level: A break above $0.00000780 is necessary for a significant price rally.

Short-Term vs. Long-Term Indicators: While short-term technical indicators flashed ‘buy’, PEPE’s long-term bullish momentum remains questionable.

Popular memecoin PEPE may be poised for a bullish rally supported by renewed trader optimism in the speculative memecoin market. With multiple Break of Structure (BOS) and Change of Character (CHoCH) confirmations, PEPE is aiming for a break above a crucial resistance level.

In the last 24 hours, PEPE’s price surged by 5.02%, and its trading volume increased by 39.88%. Thus, the question remains: Is PEPE ready for a bull rally?

PEPE’s Price Confirmations

Examining the 4-hour chart, PEPE displayed multiple BOS and CHoCH confirmations, indicating a bullish price reversal. This signifies that the memecoin is making efforts to reclaim key support zones while testing the $0.00000780 resistance level.

As per BlockchainBaller on CoinMarketCap, a breakout above this level could position PEPE for a significant price uptrend in the mid-term. At the time of writing, PEPE was trading at $0.00000762, with a Relative Strength Index (RSI) at 50 (neutral zone), hinting at more buying potential. Short-term technical indicators such as MACD (12,26) and moving averages indicated ‘buy’. Conversely, long-term moving averages displayed ‘sell’, suggesting that bears still hold some influence.

PEPE Derivatives Data Reveal Significant Bullish Sentiment

The memecoin’s Open Interest increased by 8.47% over the last 24 hours, according to Coinglass. The Open Interest (OI)-Weighted Funding Rate turned positive in the past 48 hours, indicative of renewed trader optimism.

Following the surge in trading volume (39.88%), traders could be positioning themselves for a rally, especially as PEPE aims for a breakout above its key resistance, corroborated by multiple BOS and CHoCH signals. The long-short ratio was at 1.41, indicating that buyers have been dominating the market.

However, market volatility is a concern in the memecoin sector due to its speculative nature, evidenced by fluctuating long-short ratios, implying that PEPE’s long-term bullish momentum remains uncertain.

Is a Rally Coming Up?

Based on PEPE’s BOS and CHoCH confirmations, alongside on-chain data, a rally may be on the horizon. PEPE’s RSI being in a neutral zone means it is not overbought, which suggests more buyers could enter the market short-term.

The price action of the memecoin near the resistance zone will determine its next direction. A breakout above $0.00000780 could lead PEPE towards $0.00000850 in the mid-term.