PEPE Coin Cools Off After Retesting 2-Month Resistance, What Next?

PEPE coin price has been hovering within the same level for the last 3 days after maintaining an overall upside from its April lows.

An indication that the bullish momentum was cooling off but could this pave the way for profit-taking and a potential pullback?

PEPE coin enjoyed a sizable recovery right after the first week of April, as was the case with most top coins.

It precisely rallied by 62.48% from its lowest to highest price point this month at the time of observation.

However, PEPE price did appear to run out of bullish momentum in the last 3 days, with resistance manifesting at the $0.0000088 price level.

This is an important level because this is the third time in the last 2 months that PEPE has encountered resistance within the same price zone.

The bullish pause also occurred right after China refuted claims of any agreement to lower tariffs.

Essentially, this revealed that the latest rally may have been fueled by misplaced optimism. As a result, the bullish sentiment in the market has cooled off slightly and could continue to do so if tariff wars escalate further.

The Money Flow indicator had already pivoted, indicating some profit-taking was happening, even though PEPE price action was not yet overbought.

Note that it was not overbought in the previous 2 times that it found resistance within the same price zone.

Will PEPE Coin Price Mirror its Performance in March?

PEPE’s latest bounce back demonstrated significant similarities with its previous rally attempt in March.

That bullish effort saw price push upward by 76.38%, after which the market sentiment shifted as tariff war FUD intensified.

Price subsequently dipped by 37% to the lowest price in April. The market is currently waiting to see if Trump’s attempts to patch things up with China, could potentially yield a favorable outcome for market confidence.

China denying claims that the two countries were in talks, could potentially have a negative impact on market sentiment.

Sentiment is now hanging on the balance, and the outcome between the China-U. S trade war could determine where the dice will roll. The above scenario underscores the potential that PEPE coin price could adopt a similar outcome to its performance in March.

PEPE Order Book Signals Profit-Taking on the Rise

PEPE order book demonstrated a surge in bearish sentiment in the last 24 hours. The aggregated order book liquidity data showed that the aggregated liquidity delta was in favor of the downside by about 1.2 million in the last 12 hours at the time of observation.

The situation with PEPE order book on Binance also demonstrated a similar scenario where the sell positions were notably higher. However, price was not yet ready to push down aggressively.

One of the potential reasons for bullish resilience could be the fact that spot flows in the last 24 hours at the time of observation, were still positive. The meme coin had roughly $2.11 million worth of spot inflows.

In addition, the derivatives segment also demonstrated some resilience. Derivatives volumes were up by $7.81 to $1.13 billion. Meanwhile, open interest was up $1.76% to $397.35 million.

Funding rates were firmly in the green, but the gap between longs vs shorts liquidations was narrowing. Long liquidations amounted to $588,830 while short liquidations were higher at $618,000.

In the grander scheme of things, PEPE’s latest recovery confirmed that the meme coin was still able to attract significant demand. Its percentage returns even manage to outperform Dogecoin, the king of the meme coins which achieved a 43.15% gain from the latest local low to local high, meaning PEPE coin was the more profitable of the two.

The post PEPE Coin Cools Off After Retesting 2-Month Resistance, What Next? appeared first on The Coin Republic.