On January 11, Pepe (PEPE) rose to $0.00000149 but was quickly pushed back to $0.0000011 by January 12. The decline implied that sellers had entered the market and prevented the memecoin from retesting $0.0000015.
A previous article by Coin Edition discussed how PEPE could hit new highs due to the Bitcoin (ETF) approval. Although the token attempted to, bulls were eventually overwhelmed by the broader market correction.
Price Eyes Another Rise
Despite that, PEPE’s price increased by 8.39% in the last seven days, CoinMarketCap showed. However, it is important to mention that $0.0000015 was a previous resistance for the cryptocurrency.
So, many bullish order blocks have to come to flip the zone if PEPE wants to climb. If the liquidity coming into the market aligns with the buy side, an extra 5% increase could be possible in the coming days.
An assessment of the Chaikin Money Flow (CMF) showed that the indicator had dropped to 0.07. The downward trend of the CMF indicates that the price could break below the support.
However, since the CMF had not moved into the negative territory, there is a chance for PEPE to resist dropping below $0.0000012.
Signals from the RSI showed that the reading was only a little rise away from hitting the midpoint. But if substantial selling pressure comes in, it could invalidate the bullish bias.
Meanwhile, capital inflows seem to be rising, indicating that PEPE’s price could rise further. So, a bearish scenario might not be the case for the token in the short term.
PEPE to Key Into Resistance
On the derivatives end of the market, demand for PEPE has reduced. This was indicated by the decline in Open Interest (OI) and 24-hour volume.
The decline in OI alongside a rising price action implies a weakening uptrend. However, the Funding Rate had begun to increase according to Coinglass data. For context, the Funding Rate is the cost of holding an open contract.
When it is positive, it means longs are paying shorts a funding fee to keep their positions open. However, a negative Funding Rate suggests a bearish sentiment. In this instance, shorts receive funding from longs.
As of this writing, PEPE’s Funding Rate was 0.011%. This means that the cryptocurrency was trading at a premium compared to the spot price. Also, it implies that longs are more aggressive but not yet rewarded for their positions.
In terms of the price, PEPE’s movement alongside the rising Funding Rate suggests that it could pump into the resistance at $ 0.0000015.
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