What's Next For PEPE After 12% Surge?

PEPE, one of the popular meme coins in the crypto market, has recently experienced a price surge, reigniting investor optimism. While the short-term price action has turned positive, liquidation levels are raising concerns.

Despite the meme coin’s efforts to maintain its uptrend, a concentration of liquidations could lead to a 14-20% drop in the coming days.

PEPE bulls managed to secure some gains over the past few days. The critical support level at $0.0000062 was retested, resulting in a positive reaction.

However, declining trading volume in the meme coin is a cause for concern. Data shows a decrease in the number of new addresses over the past few days. Falling daily active addresses could also indicate a decline in demand.

Should You Be Concerned About PEPE’s Trading Volume?

PEPE has maintained an uptrend on longer timeframes. The low swing at $0.00000581 is the first hurdle bears need to overcome to turn the market structure bearish.

With the decline in trading volume, it becomes evident that the meme coin is in a consolidation phase. Additionally, the RSI technical indicator stands at 46. While a drop below the neutral 50 level indicates a preference for downward momentum, a drop below 40 is required to confirm a strong downtrend.

The Chaikin Money Flow, indicating a strong capital outflow from the market, is positioned below -0.05. This suggests that further losses are imminent.

What’s Next for PEPE?

The liquidation heatmap shows that the region between $0.000006 and $0.0000062 is a critical level.

Despite the short-term positive reaction in PEPE’s price, it may choose to deepen its decline to reach the nearby liquidation levels.

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The key level to watch closely in the coming week is $0.0000056. This level could be PEPE’s next destination. If the bears assert their dominance and manage to reverse the trend, the coming week could witness significantly more losses.

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