PEPE May Cool Down Before Soaring

The year 2024 has been tremendously successful for PEPE cryptocurrency, marked by an impressive price surge of over 1000%.

While such a rise may stir excitement, it's crucial for traders and investors to maintain an objective viewpoint and manage their emotions to make prudent decisions.

The current question facing us is whether the price will undergo a correction or continue its bullish trend.

Daily time frame analysis

On the daily timeframe, a distinct Buy-side Liquidity (BSL) selection was evident, which likely provided an opportunity for so-called Smart Money to exit their positions or take partial profits. This order matching process is typically indicated by STOP orders placed above fundamental highs or below lows.

In our case, Buy Stop orders were placed above past All-Time Highs (ATHs), serving as a counterparty for Smart Money looking to sell their positions.

The market structure is bullish on the daily timeframe. Currently, the Buy-side Imbalance Sell-side Inefficiency (BISI) zone is visible on the chart, marked by a blue rectangle, aligning with the 0.5 level.

This level is crucial for assessing Premium and Discount zones, and there is a potential that the price could drop below 0.5, creating buying opportunities.

If the price manages to close the Fair Value Gap (FVG) within the BISI on the daily timeframe, it would indicate that the buy positions are nullified, opening up the possibility for a continuation of the bearish correction.

Until such a closure occurs, buy trades could turn out profitable!