- On 4-hour timeframes, Pepe was on the verge of breaking out to $0.0000078.
- Pepe has gained 3.94% over the past week.
Over the past month, Pepe [PEPE] has made considerable gains. After a strong market dip, the memecoin has recovered from a local low of $0.0000052 to a local high of $0.0000075.
In fact, at the time of writing, Pepe was trading at $0.0000073, to trade above its 200-day Simple Moving Average.
This marked a 3.94% increase on weekly charts, with the bullish outlook extending on monthly and daily charts.
Source: TradingView
After a recent price surge, Pepe has shown a golden cross.
In the analysis of the memecoin’s Moving Averages (MA), the short-term MA was above the long-term MA, at press time. Also, the 9-day MA was at $0.0000072, while the 21-day MA was at $0.0000069.
After experiencing a drop, the memecoin has recovered, and a golden cross has emerged in the 4-hour timeframe.
If this trend continues, Pepe could also see a golden cross appear on daily timeframes.
What do Pepe charts suggest?
According to AMBCrypto’s analysis, Pepe is experiencing strong bullish sentiment as upward momentum builds.
For starters, Pepe is experiencing demand as investors turn to accumulating the memecoin. Looking at the memecoin’s spot netflow, the market is seeing more exchange outflows than inflows.
As such, Pepe’s netflow has remained negative for two consecutive days, signaling more exchange withdrawals. When exchange outflow spikes, it reflects growing bullish sentiments in the market.
Source: CoinGlass
Additionally, Pepe’s Open Interest (OI) surged by 8.22% to hit $293.43 million. A spike in OI suggests that investors are opening new positions.
Usually, a rise in OI reflects the growing demand for an asset.
Source: CoinGlass
These positions being opened in the market are mostly long.
Looking at the Long/Short Ratio in the 4-hour timeframe, there are more long positions than shorts.
In fact, 53% of futures accounts are longs. When long position holders dominate the market, it suggests that the majority of investors are bullish and expect prices to rise further.
Source: CoinGlass
What next for the memecoin
The memecoin is shifting toward a bullish sentiment, with markets expecting strong gains.
The recent bullish crossover on the MACD indicates a strengthening upward momentum, suggesting a continuation of gains.
If this trend persists and the demand zone holds, Pepe could see further price increases. A golden cross pattern forming on the 4-hour timeframe may signal a potential breakout, allowing the memecoin to reclaim $0.0000078.
Conversely, if sellers take profits, a pullback could cause the price to drop to $0.0000069.
