Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- PEPE’s higher timeframe market structure was bullish.
- Funding rates were positive despite the slight retracement at press time.
The crypto market had an impressive recovery in mid-October, with most altcoins posting double-digit gains. Memecoins also performed well. In particular, Pepe’s [PEPE] weekly performance stood at +12% between 16 – 22 October.
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A week ago, AMBCrypto correctly projected the retest of the bullish zone at $0.00000060 and the shorting opportunity such a move presented.
Now that PEPE has cleared the immediate roadblock at $0.00000070, can late buyers enjoy gains?
PEPE flips key resistance to support
Source: PEPE/USDT on TradingView
At press time, PEPE attempted to flip the resistance and bearish OB of $0.00000069 – $0.00000072 (orange) to support. If the attempt succeeds, bulls could seek market re-entry at the resistance-cum-support zone of $0.00000069 – $0.00000072.
The bullish target will be the daily chart’s bearish OB of $0.00000077 – $0.00000083 (red). A retest of the above roadblock could present a 13% potential gain.
However, a weakening below the $0.00000069 – $0.00000072 will invalidate the bullish bias. A retest of the bullish zone at $0.00000060 could be likely in such a downswing scenario.
Meanwhile, the Relative Strength Index (RSI) trended upwards, denoting massive buying pressure in the past few days. But muted capital inflows could complicate a solid bullish momentum, as shown by the wavering of Chaikin Money Flow (CMF) near zero.
The funding rates remained positive
Source: Coinglass
Short sellers attempted to gain openings in the past few hours before press time, as indicated by the downsloping Cumulative Volume Delta (CVD). However, the drop in Open Interest (OI) rates wasn’t significant enough to warrant an outright leverage towards sellers.
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Besides, the funding rates remained positive as of press time, underscoring the positive market sentiment on the asset.
Nevertheless, the muted capital inflows could complicate bullish efforts if it weaken in the next few days. A drop below the breaker block of $0.00000069 – $0.00000072 will invalidate the long set-up.