PEPE Coin Price Eyes Rally If Bulls Defend $0.0000008353 Support Zone
Key Insights:
- PEPE coin price is nearing breakout as it holds micro support at $0.0000008353.
- Cup-and-handle formation, RSI wedge, and wave structure all suggest bullish setup.
- Short liquidations and negative funding may trigger forced buybacks above resistance.
PEPE coin price is showing signs of strength following weeks of consolidation. Technical analysis points to an emerging breakout, while data from derivatives signals that higher volatility could arise. If support levels are exceeded, many market analysts consider the outlook as favorable.
PEPE Coin Price Eyes Breakout Amid Cup-and-Handle
According to Rekt, PEPE coin price is forming a textbook cup-and-handle pattern on the daily timeframe. In April, the rounded “cup” began forming and kept growing until it hit its height in May. Following that, the “handle” has been formed when lateral consolidation happened just below the key resistance at $0.00000145.
At the moment, the meme coin price is close to the neckline resistance of $0.00000115. Rekt noted that this resistance also coincides with a breakout signal in the Relative Strength Index (RSI). RSI is moving within a descending wedge, which is usually bullish before a strong move happens.
A move out of this range could lead to major gains, as signs that suggested excessive selling have been corrected. Currently, there is a high probability that the market price will increase from its recent formation. When volume decreases, it can wipe out selling pressure and make way for an upcoming rally.
Wave Structure and Fibonacci Align at Key Support
Man of Bitcoin has applied Elliott Wave Theory to PEPE, mapping out a completed five-wave impulsive rally that peaked around $0.00000194.
After that, the price reversal showed an ABC pattern unfolding. It’s important to note that the support zone is found at $0.0000008353, matching the Fibonacci 0.618 retracement level.
According to Man of Bitcoin, this level marked “micro support” is vital to the bulls. If the PEPE coin price holds this line, it preserves the bullish structure and positions price for another impulsive move. If the support breaks, it will create a new pattern and point to lower prices in the future.
The pattern suggests the PEPE price may go toward Fibonacci extensions at $0.00000157, $0.00000166, and as much as $0.000001849 after touching support.
Nevertheless, if there is a break in the golden pocket, Pepe coin price may fall to $0.0000006460 and $0.000000460, which are targets for bigger retracements.
Long Bias Builds as Binance and OKX Traders Tilt Bullish
According to Coinglass data, the majority of top traders are anticipating for prices to rise. The long/short ratio for Binance is 0.9952, showing that a similar number of retail traders are going long and short.
Still, more than half (50.59%) of top Binance accounts have long positions, and 50.37% of their portfolios are long-biased.
OKX is showing a stronger signal, as its long/short ratio is 1.8. Such an increase suggests that traders on the platform are more bullish. The disparity between exchanges reflects different market sentiment and strategies, but both reveal a slight edge toward upward movement.
Open interest at the biggest exchanges has decreased by 3.13% over the past day, and trading volume is also down by 27.42%. This suggests that PEPE price is going to drop, which is usually a sign of a major move in prices.
Many traders could be limiting their risks before any volatility, as important technical levels are close by.
However, funding rates on big crypto exchanges have recently become slightly negative, indicating that more people are betting on prices falling. Should Pepe coin price rise above the resistance, it could lead to the asset being squeezed.
Liquidation Trends Hint at Emerging Short Squeeze Pressure
Besides, liquidation data from CoinGlass indicated more pressure being put on those with short positions. Over the last 24 hours, there were $632.77K worth of liquidated short positions and just $251.38K worth of longs. It implies that shorts are starting to be unwound as a result of pressure.
Large liquidation often appears when bears are forced out of trades, suggesting that further liquidation can happen if resistance is broken.
Liquidations are accumulating around the $0.00000145 level. If Pepe coin price breaks through this level, short liquidations could lead to even stronger upside momentum.
