PEPE Displays a “Golden Cross” Signal : a Precursor to a Rally ?
Over the past few weeks, PEPE has seen significant gains. After a sharp market decline, the memecoin has risen from a local low of $0.0000052 to a local high of $0.0000075.
At the time of writing, PEPE is trading at $0.0000073, above its 50-day Moving Average (MA). This represents a 3.94% increase on weekly charts, with a bullish outlook extending to monthly and daily charts.
Analyzing the Moving Averages (MA) of the memecoin, it’s observed that the short-term MA is above the long-term MA. The 9-day MA is at $0.0000072 (in blue), while the 21-day MA is at $0.0000069 (in green).
Following a decline, PEPE has recovered, and a “golden cross” has appeared on the 4-hour chart, with a buy signal that hasn’t been seen since last month.
If this trend continues, PEPE could also see a “golden cross” forming on the daily charts. The next levels to watch are at $0.0000090 and then a strong resistance at $0.000010.
What Do the PEPE Charts Suggest ?
Overall, PEPE is experiencing strong bullish momentum as its rally intensifies.
Firstly, PEPE is seeing increasing demand from investors accumulating the memecoin. By examining PEPE’s net flows, the market is witnessing more withdrawals from exchanges than deposits.
Thus, PEPE’s net flow has remained negative for two consecutive days, indicating a rise in exchange withdrawals. Increasing withdrawals from exchanges signal growing bullish sentiment in the market.
Additionally, PEPE’s Open Interest (OI) has surged by 8.22% to reach $293.43 million. An increase in OI suggests that investors are opening new positions, reflecting growing demand for this asset.
These market open positions are predominantly long. Examining the Long/Short ratio on the 4-hour chart, there are more long positions than short positions. In fact, 53% of futures accounts are long. When long positions dominate the market, it suggests that the majority of investors are optimistic and expect prices to continue to rise.
What Lies Ahead for the Memecoin ?
PEPE is trending towards a bullish sentiment, with markets anticipating strong gains. The recent bullish MACD crossover indicates a strengthening of the upward momentum, suggesting further gains.
If this trend persists and the demand zone stabilizes, PEPE could experience further price increases. The formation of a “golden cross” pattern on the 4-hour chart could signal a potential bullish breakthrough, allowing the memecoin to reclaim the $0.0000090 level.
Conversely, if sellers take profits, a pullback could drop the price to $0.000069 or $0.000065. Breaking below these levels will lead PEPE to new lows. According to trader Blunted Beats, “any rise is a short opportunity” on memecoin PEPE. The coming days will be crucial.
