- PEPE price consolidated at the $0.0000077 resistance level after a consecutive bullish rally.
- The stable token supply clashed with an unclear near-term price direction.
Pepe [PEPE] was testing a key resistance level at $0.0000077 at the time of writing. This comes after the meme coin rejected a key bullish pennant at $0.0000063 and achieved a massive 20% increase from its recent trading price.
The $0.0000077 level emerged as a barrier to the bullish momentum that broke out to test the higher resistance at $0.0000091.
This consolidation phase precedes a period of upward movement, which increases the market’s curiosity about whether the bull rally will continue or not.
Source: TradingView
The stochastic RSI indicator for PEPE indicated a bullish divergence. This suggests that the ongoing consolidation could lead to an upward move. However, a bearish run cannot be written off as the stochastic RSI approached an overbought zone.
The bullish pennant pattern on the chart increases the chance of a breakout. However, the resistance level at $0.0000077 still poses a major challenge for the bulls to beat.
PEPE whales watch
Taking a closer look at the market trends, the Coinglass liquidation heat map revealed some interesting trends in whale activity.
The data showed that PEPE whales are returning. Key market participants are positioning themselves around current prices, which could lead to excitement if PEPE makes a major move.
Source: IntoTheBlock
Will supply stability become an anchor for the long term?
Despite the short-term ups and downs, the total supply of PEPE has remained stable in recent months. This consistency could act as a long-term price anchor if demand continues.
Source: Santiment
The existing liquidation pool of 1.43 million at the $0.0000075 level supports the aforementioned PEPE bullish sentiments. This massive liquidation can act as a price magnet that can push prices above the key resistance level.
Source: Coinglass
Is your portfolio green? View the Pepe Profit Calculator
Looking ahead, market participants are keeping an eye on the resistance level at $0.0000077. If we ignore this, PEPE could skyrocket to the recent high of $0.0000091.
If it fails to break through, we could see it fall back to around $0.0000069.
Credit : ambcrypto.com
