As per recent trends, PEPE, the popular memecoin, appears to be on the verge of descending below the support level of $0.0000012, as suggested by the Chaikin Money Flow (CMF). However, a surge in capital inflows could potentially overturn a pessimistic outlook for PEPE. Indications of a potential jump in the Funding Rate suggest that the price could propel towards $0.0000015.
PEPE’s Recent Performance
On January 11, PEPE reached a high of $0.00000149, only to be swiftly pulled back to $0.0000011 by the following day. This downturn suggests that sellers have entered the market, thwarting the memecoin’s attempt to retest the $0.0000015 mark. Despite the broader market correction overwhelming the bulls, PEPE has managed to record an 8.39% increase in price over the past week, as reported by CoinMarketCap.
Nevertheless, it’s crucial to note that the $0.0000015 level has previously acted as a resistance for the cryptocurrency. Therefore, a substantial number of bullish order blocks would need to materialize to flip this zone if PEPE is to ascend.
Market Liquidity and PEPE’s Prospects
If the liquidity influx aligns with the buy side, PEPE could potentially experience a further 5% increase in the coming days. A review of the CMF reveals a drop to 0.07. This downward trend implies that the price might break below the support level. However, given that the CMF hasn’t yet entered negative territory, PEPE might manage to avoid dipping below $0.0000012.
Signals from the Relative Strength Index (RSI) indicate that it is just a small rise away from reaching the midpoint. Yet, the emergence of significant selling pressure could potentially nullify the bullish bias.
Capital Inflows and PEPE’s Future
Interestingly, capital inflows appear to be on an upward trajectory, suggesting that PEPE’s price could potentially climb further. Therefore, a bearish scenario might not be imminent for the token in the near term. However, on the derivatives end of the market, demand for PEPE has seen a decrease, as indicated by a drop in Open Interest (OI) and 24-hour volume. A declining OI coupled with a rising price action hints at a weakening uptrend.
Nevertheless, according to data from Coinglass, the Funding Rate has started to rise. To put it simply, the Funding Rate is the cost of maintaining an open contract. A positive Funding Rate signifies that longs are paying shorts a funding fee to keep their positions open. Conversely, a negative Funding Rate indicates a bearish sentiment, where shorts receive funding from longs. At the time of writing, PEPE’s Funding Rate stood at 0.011%, implying that the cryptocurrency was trading at a premium compared to the spot price. This also suggests that longs are more aggressive but have yet to be rewarded for their positions.
Given the rising Funding Rate and PEPE’s current price movement, it’s plausible that the cryptocurrency could surge towards the resistance at $0.0000015. For those interested in tracking PEPE’s performance, the cryptoview.io application provides a comprehensive and intuitive platform.
Start now using our tools for free.Please note: The information provided in this article is purely for informational and educational purposes and does not constitute financial advice of any kind. Readers are advised to exercise caution and conduct their own research before making any decisions related to the company.
