Is Pepe setting up for a range? 50% retracement level holds the key
What does the 50% retracement level indicate for PEPE?
The 50% retracement level for PEPE is a crucial indicator in technical analysis that helps traders identify potential support and resistance zones2. It represents the midpoint of a recent significant price movement and is commonly used in conjunction with other Fibonacci retracement levels to predict potential trend reversals or continuations. In the case of PEPE, the 50% retracement level is being closely watched to determine whether the memecoin will continue its upward trend or experience a pullback.
What signals a possible range formation for PEPE?
The 50% retracement level and the daily RSI indicate a possible range formation for PEPE. However, rising buying pressure and the liquidation heatmap provide opposing signals. While the memecoin struggles to break past a local resistance level, it shows signs of forming a range, but a bullish chart pattern is also possible3.
How do rising buying pressure and liquidation heatmap conflict?
Rising buying pressure indicates an increase in demand for an asset, which can potentially lead to price appreciation. On the other hand, a liquidation heatmap shows where traders' positions may be liquidated due to adverse market movements. If the heatmap indicates a high number of potential liquidations, it could suggest market instability or a potential price drop. Thus, rising buying pressure and a bearish liquidation heatmap can provide conflicting signals for traders.