PEPE Price Received Buying Pressure in Demand Zone: What's Next?

The Pepe coin price has remained negative since December and lost around 68%. Amid this bearish trend, the PEPE has lost the 200-day EMA and many support levels.

The Pepe coin price has been on a bearish path since December, with a loss of around 68%. Amid this downtrend, PEPE dropped below the 200-day EMA and several support levels. It slid into the previous support zone and encountered buying pressure. The meme coin also noted a 13% gain in a few hours.

Out of one of the most bearish weekends for the cryptocurrency, PEPE was among the coins targeted by the bears. The meme coin dropped to its lowest price since the 9th of November.

Gains made by PEPE in November, the second-most bullish month for the meme coin, were almost completely wiped out. The selling pressure over the weekend further fueled bearish expectations, highlighting a bearish start to February.

Only two days ago, a crypto analyst, @CryptoKaleo, shared his thoughts on the extended PEPE decline. He stated that there was a good chance of more selling pressure on meme coins.

PEPE Price Faced Buying Pressure at Demand Zone: What Next?

At the time of writing, the PEPE coin price was trading at $0.00000387 with a 19.67% decrease in the past 24 hours. The market capitalization stood at $4.14B and the 24-hour trading volume was noted at $2.85B.

The PEPE price encountered buying pressure at the $0.00000800 demand zone. If the price formed any bullish candlestick in the demand zone, it could face strong buying pressure. Once the price moved out of the demand zone, a bullish rally could be observed.

On the other hand, if the Pepe coin price slipped below the major support level of $0.00000800, it could lead to sellers. Most traders and investors may prefer to book profit if the price sustained below the major support level.

PEPE Futures Open Interest Analysis

Analysis of the latest derivatives data suggests that the recent crash may have been a leverage shake-down. In the past 24 hours, the crypto market saw liquidations of nearly $1 billion, out of which PEPE short liquidations were around $5 million.

Shorter time frames, such as the 1-hour and 4-hour charts, also depicted a significant increase in short liquidations, further supporting the observation of a leverage shake-down. Additionally, open interest declined from $472.49 million to $405.72 million over the weekend.

PEPE Price Analysis in Light of Recent Trends

Recent price movements of the PEPE coin showcase a challenging period for altcoins, as it faced a significant drop of 40% amid broader market sell-offs. But despite this bearish trend, there are potential signs of recovery.

After hitting a key demand zone, the price has seen a recovery of 13%. This surge in trading volume suggests renewed interest, indicating that some investors might be viewing it as an opportunity to buy at a discount.

However, the market is still showing caution as PEPE’s price continues to trade below crucial support levels. Any sustained drop below these levels could trigger further selling. If the price manages to hold strong in the demand zone, it could present a bullish scenario. Nonetheless, traders are advised to be cautious and wait for confirmation before making any decisive market moves.

This article is intended for informational purposes only and does not provide financial, investment, or any other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your own research before making any financial decisions.

Varuni has been in the web3 space for half a decade, witnessing the changing dynamics of DLT, Blockchain and Web3. With 8 years of journalistic expertise, she has a keen interest in emerging technology and their impact on society. She has published news and on-chain analysis articles on Nasdaq as well as some of the top web3, crypto news firms. Currently, she heads The Coin Republic as the Editor-In-Chief.