The cryptocurrency market’s bullish start to the week has stalled, with Bitcoin dropping to the $90k region.
Altcoins are also in the red as they retest the weekend lows after performing excellently on Monday.
PEPE, the native token of the Pepe memecoin, has dropped below the $0.000005 region after losing 1% of its value in the last 24 hours.
However, the technical outlook remains mixed as the broader crypto market remains in a consolidating phase.
The derivatives and on-chain data have flashed a bullish signal, suggesting that PEPE’s price could surge higher in the near term.
PEPE’s derivatives and on-chain data suggest a bullish outlook
PEPE is down 1% in the last 24 hours and is currently trading above $0.000004 per coin. However, the memecoin is regaining retail demand as derivative traders are increasing their positions in the market.
According to CoinGlass, PEPE’s futures Open Interest (OI) has seen a 7.87% increase over the last 24 hours, rising to $257.18 million.
With PEPE and other memecoins, recovery runs are mainly driven by retail demand and speculation. Hence, PEPE could embark on a recovery as retail demand continues to increase.
Furthermore, Santiment data shows a surge in network growth to 623 on Monday, up from 448 on Sunday.
This surge suggests an increase in the number of new addresses transacting with PEPE for the first time.
The percentage of PEPE supply in profit currently stands at 23.20%, after dropping to the 20% region over the weekend.
Santiment added that whales executed 36 transactions worth over $1 million on Sunday, allowing the memecoin to surge past the $0.00005 mark on Monday.
The memecoin could rally higher in the near term as more whales accumulate PEPE.
Will PEPE surge past the $0.0000060 resistance?
The PEPE/USD 4-hour chart is bullish and efficient, as Pepe has added 15% to its value in the last seven days.
At press time, PEPE is trading below $0.0000050, down 1% in the last 24 hours.
The coin could retest the $0.00000395 support level, which aligns with the November 21 low, before rallying higher.
However, the momentum indicators on the 4-hour chart are bullish, suggesting that buyers are currently in control of the market.
The Relative Strength Index (RSI) at 50 is rising toward the overbought region, suggesting a growing buying pressure.
Furthermore, the Moving Average Convergence Divergence (MACD) remains steady above the zero line, with mainly green histogram bars, indicating bullish momentum.
If the rally continues and PEPE closes its daily candle above $0.00000521 level marked by the November 4 low, the memecoin could retest the next major resistance level at $0.00000650, followed by the 200-day EMA at $0.00000839.
However, failure to close above the $0.00000521 level could see PEPE grab the Transactional Liquidity (TLQ) at $0.00000430 before rallying higher.
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