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PEPE coin was one of the meme coins that made massive gains in 2024. Traders need to be watchful not only for its price action but also for the activities of the smart players on the altcoin.
PEPE formed a bearish reversal pattern through the rising wedge formation on the 2-hour chart, which also provided for a potential bullish continuation.
Why Does PEPE coin Need More Than Price Action to Move?
PEPE, as of press time, slightly surpassed resistance at the price level of $0.00000800 to $0.00000823 while under analysis and was trading at $0.00000789.
The support level came in at $0.00000740, a zone where small candles reigned. It is an indication of the fight between bulls and bears within the wedge pattern.
A breakdown by PEPE below $0.00000800 with a price fall below $0.00000740 would form a bearish breakdown. That would drive the price to $0.00000680 or lower.
The price action would be altered if PEPE breaks above $0.00000840. This action would negate the bearish setup to trigger further rallies to $0.00000900 and perhaps even $0.00000950.
The rising wedge continuation pattern could be a sign of an upcoming price decisive move. It could lead to lower PEPE values based on the intensity of buyer and seller activities.
How Liquidity Initiated The Upward Movement
Based on internal and external liquidity analysis, PEPE revealed a potential bullish reversal, with price action portraying a 13-day uptrend following a sweep in liquidity at $0.00000589. This uptrend hinted that PEPE could be destined for the buy-side liquidity at $0.00002384, a potential 285% rise if it achieved its December highs.
The broken downtrend line suggested a potential switch to bullish sentiment. However, the MACD line signaled a weak bullish crossover, with the MACD line crossing over the signal line.
The shift suggested that momentum was starting to turn positive and, if maintained, would work to keep prices higher.
However, in the event buying pressure declined, PEPE would struggle to break above resistance points, particularly around $0.00000850, where breakdowns have occurred in the past.
If the bullish breakout persisted, crossing above $0.00000850 would show strength, having PEPE reach $0.00001300 before moving up towards $0.00002384.
Otherwise, if the breakout failed, it might correct. Thus, Pepe price might retest support at $0.00000700 or even touch the base at liquidity points near $0.00000589. A couple of sessions thereafter would indicate whether the PEPE recovery was firm or whether it was still part of a broader bearish trend.
The Role of the Smart Money on PEPE
While the two largest among Smart Money’s buys in the past week were LINK and AAVE, with net volumes of $2.49M and $769.7K, respectively, attention was on PEPE coin, the third.
PEPE showed incredible Smart Money interest, as seen from its $1.14M buy volume and $323K sell volume, to provide it with a net flow of $813K. Active buying was evident with the net positive flow and the volume witnessed at $764.8K in seven days, showing persistent confidence.
An average buying price of $0.0000071 was slightly below the value of $0.00000789 as of press time. That indicated Smart DEX Traders were getting into profit as interest continued.
Such acceleration could continue driving PEPE’s price higher in the near term because the Smart Money movement has a tendency to generate overall market momentum.
But threats were real too. Strategic sell-outs of Smart Money also have the potential to unleash ferocious selling, volatility, and a possible price drop.
Their presence could generate manipulation that would result in continued decline, thus leading PEPE to its weakness as a cheap token. Will accumulation persist or profit-taking be in control?
