PEPE Price Analysis

PEPE hit the upper band of the Bollinger Bands it has been trading within. Some participants seemed to be aligned with a drop, while the market maintained its bullish structure.

Over the last 24 hours, PEPE has been on a downtrend, with a minimal loss of 1.06%. Analyzing the memecoin’s price action revealed that while spot traders have been accumulating, derivatives traders have been focused on selling PEPE, as short contracts rose across the market.

AMBCrypto’s analysis suggested that the market could go either way. Notably, two technical indicators indicated that bulls may overturn the bears and gain momentum.

A Historic Bearish Confluence

A recent analysis of the Bollinger Bands on the daily chart revealed that the asset has been trading close to its upper band, which is known to house significant selling pressure causing a decline in the altcoin’s value. Historically, PEPE at this level has recorded major price drops of 49%, 28%, and 46% in past instances.

If this trend repeats, PEPE could face a double-digit decline, potentially returning to trading below its descending line. A breach above this line usually indicates a rally, but current sluggish price movements suggest a decline is still possible.

Derivative and Spot Traders Remain on Different Pages

In the past 24 hours, derivatives and spot traders have taken opposing positions. Derivative traders have been betting on declining prices, while spot traders accumulated despite dips. Over the same period, Open Interest and Volume in the derivatives market fell by 1.65% and 39.46%, indicating dominance by short traders and a weakening momentum. The value of unsettled contracts stood at $233.96 million.

The downward pressure from short traders could keep PEPE’s price low or drive it lower, while spot traders have purchased $4.4 million worth of the asset in the last 24 hours, preventing further price depreciation. This significant purchase typically indicates strong bullish conviction, potentially leading to a price rebound.

Where is PEPE Heading?

Further analysis by AMBCrypto indicated ongoing accumulation and liquidity inflows into PEPE, suggesting a rally may be on the horizon. The Accumulation/Distribution indicator showed a positive reading, implying the market is in an accumulation phase. Additionally, the Money Flow Index (MFI) confirmed liquidity is flowing into PEPE, indicating buyer presence.

Currently, PEPE may defy its historical bearish trend and establish a new high, especially as spot traders continue to accumulate.