Vijesti Analize PEPE May Breakout to New Highs

PEPE May Breakout to New Highs

June 27, 2024 Analize
BITmarkets | PEPE May Breakout to New Highs

Exhibiting noticeable bullish momentum during the past week, PEPE may be on the course of establishing a robust uptrend after a month of price deterioration.

The memecoin leader is currently in a blow-off top phase, which typically indicates a peak in price following a rapid rise. After experiencing significant market-wide downturns, PEPE has shown a strong rebound, managing to stay above its previous All-Time High (ATH).

Will this trend reversal remain intact and potentially evolve into a prolonged bull run towards new highs?

Daily time frame analysis


PEPEUSDT - 1 Day Time Frame

PEPE recently rejected the Value Area Up (VAU) as marked by the Fixed Range Volume Profile, which spans from the top to the bottom of the trading range. This rejection points to a likely retest of the previous ATH, unless PEPE can successfully turn the VAU from a resistance into support.

Additionally, PEPE has shown a vigorous response upon retesting the 100-day Moving Average (100MA), suggesting a possible gradual upward accumulation similar to previous patterns. This is followed by a lighter retest of the 100MA, presenting potentially excellent entry points for traders.

However, given the current market's weakness and PEPE being in a blow-off top phase after a significant rally, a more cautious, slower approach might be expected before another upward movement.

1-hour time frame analysis


PEPEUSDT - 1 Hour Time Frame

On the 1-hour chart, PEPE has formed a well-defined trading range with false breakouts observed on both the buying and selling sides. The Range Top currently serves as the local high, with the Value Area Down marking the lower boundary of the range.

Given the volatile nature of memecoins and the general impatience among retail traders, a quicker breakout could occur if Bitcoin starts moving again. It's crucial to monitor the marked full blue line for potential lower highs and breakout scenarios.

However, making new entries at this line is not recommended due to the high risk involved. Safer entry points would be either a retest of the previous ATH or when PEPE trades above the Value Area Up without showing signs of overextension.

When to buy PEPE?

While memecoins like PEPE can exhibit rapid movements and appear strong, it's important to remain cautious.

There is still a possibility that PEPE could reach new lows, so it's advisable to wait for a confirmed bottom on the daily timeframe before entering the market. This approach helps in mitigating risk and capitalizing on more stable entry points.

Overall, traders should maintain a vigilant watch on market signals and adjust their strategies accordingly, especially in the highly unpredictable environment of cryptocurrency trading.

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