- Crypto connoisseur Ali Martinez delves into PEPE’s sell signals on TD Sequential.
- GameStop’s revived stock helped PEPE to hit a new all-time peak on May 14, 2024.
- PEPE’s stardom on Derivatives wanes as volume slumps by over 40% daily.
Amidst this month’s crypto roller coaster, the frog-themed Pepe Coin (PEPE) emerged victorious with 92% gains over the past 30 days. Claiming a new all-time peak of $0.00001151 on May 14, PEPE retraced over 13% of this price milestone. However, experienced cryptocurrency analyst Ali Martinez believes that PEPE’s backtracking is far from over.
PEPE Sets Foot In Bearish Divergence
The veteran crypto trader posted an elaborate technical analysis based on the Tom Demark Sequential (TD) forecast. This technical indicator determines the length of the ongoing price trend, signaling a top or bottom in the process. In PEPE’s case, Ali Martinez explained that two selling signals were identified on the 3-day charts.
While this prediction is based on an aggressive 13 and a green nine candle, as portrayed in the graph above, Martinez also noted that an additional bearish divergence has formed between PEPE’s price performance and the Relative Strength Index (RSI). Upon further research by DailyCoin, it was found that RSI still lies slightly under the overbought side at above 55.
Here’s PEPE’s Key Levels to Watch Out for
Whilst bearish divergence occurs when the cryptocurrency’s bullish attitude slows down, the discrepancy between higher highs and lower highs could also signal a rapid price decline. In PEPE’s case, this also highly depends on the selling pressure among combined orders. Luckily for PEPE, the combined liquidity books point to a $13 million difference between PEPE bids and PEPE sales in the latest 24-hour timeframe.
Meanwhile, PEPE coin analyst 0xV is looking into PEPE’s most recent daily closing price and the highest wick recorded in March 2024. In technical crypto charts, a wick, often called a tail, determines the area where the coin’s price fluctuates regarding the opening price.
According to 0xV, PEPE’s potential to produce another leg in the bull run highly depends on the price range between $0.000010 and $0.000011. However, after today’s 4% cryptocurrency market correction, PEPE has plunged below this price range, trading at $0.000009972 as of press time. On the other hand, the narrowing Bollinger Bands tells us that heavy PEPE price fluctuations are likely to soothe before a drastic price trend reversal happens.
On the Flipside
- As PEPE enters market correction with a 4% drop over the past 24 hours, the price decline can be partly ascribed to the fading PEPE interest in the Derivatives markets.
- With over $1.19 million in long position liquidations, PEPE’s Derivatives trade volume slumped by 40% in a day, now encompassing $2.07B, according to CoinGlass.
Why This Matters
Despite huge price fluctuations, the PEPE token has been one of the best performers among the TOP 30 altcoins by global market cap on a yearly basis, returning a 541% yield in a 365-day timeframe.
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