Pepe [PEPE] gained 41% on the 26th of February, taking prices past a key level of resistance. This resistance repelled the bulls in December. Additionally, it surged past highs not seen since March 2023.
On-chain metrics supported the idea that the meme coin could rally higher. However, a Bitcoin [BTC] short-term retracement could see PEPE follow in its steps.
The daily price action shows a bullish conviction
The $0.000001 support level was highlighted by the cyan box because it was a support zone from December that served as resistance in January. It was converted to a support zone in the middle of February, and the bulls forced the enormous rally from there.
The OBV managed to break past the highs it registered in December. This was a strong sign that PEPE would likely continue to climb higher. However, it does not rule out the possibility of a pullback to the $0.00000165 support.
The market structure and the RSI showed firm bullish momentum. To the north, the next significant level was resistance was at $0.00000281, which was 34% higher than the current market price.
Selling pressure has not increased drastically yet
The MVRV ratio rose to highs not seen since May 2023. The weighted sentiment was also extremely positive. This suggested that holders were jubilant, but it was also a caution that profit-taking activity could depress prices.
The mean coin age has been trending higher over the past month, and saw a dip over the past few days. This dip was not deep and was not a sign of high volumes of PEPE movement.
Similarly, the age consumed metric was also not as high as it went in late January. Therefore, selling pressure was present but has not yet peaked.
Once again, the inference was that, while PEPE has room for further gains, a sharp retracement in these over-extended market conditions was also possible.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Source : AMBCrypto / Feb 27, 2024