PEPE - not just a FROG ! Liquidity game PEPE, the meme-inspired cryptocurrency, has exhibited a bullish breakout on the hourly chart, suggesting a potential continuation of its upward trend. The price action and market indicators hint at a strong possibility for further gains.
Ascending Trendline and Liquidity Gaps:
PEPE has been trading along an ascending trendline on the hourly chart, creating higher lows and higher highs. This trendline indicates an underlying bullish momentum. Notably, there are significant liquidity gaps below the current price, suggesting the presence of strong buying support.
Equal Highs and Liquidity Pool Formation:
PEPE has recently formed equal highs, creating a horizontal liquidity pool above the current price. This pattern suggests that there is a significant supply of PEPE at this level, which could act as a resistance point. However, the recent bullish breakout suggests that buyers have overcome this resistance.
Bullish Breakout and Imbalance:
The recent breakout from the ascending trendline and equal highs pattern has created an imbalance, with more buyers than sellers. This imbalance suggests that the upward momentum is likely to continue.
Anticipated Retest and Continued Growth:
I anticipate a retest of the 0.5 Fibonacci retracement level of the imbalance, around $0.0000094, followed by a continuation of the upward trend. This retest would serve as a confirmation of the bullish breakout and provide an opportunity for new buyers to enter the market.
Supporting Indicators:
Relative Strength Index (RSI): The RSI has broken above the 70 level, indicating strong bullish momentum.
Moving Average Convergence Divergence (MACD): The MACD lines are bullish and have crossed above the signal line, further confirming the uptrend.
Conclusion:
PEPE's price action, market indicators, and bullish breakout pattern suggest a strong potential for continued growth. The anticipated retest of the 0.5 imbalance level and the supportive indicators reinforce the bullish outlook. While there may be short-term pullbacks, the overall trend appears to be favoring the bulls.
