The cryptocurrency world is buzzing as the popular memecoin, PEPE, experienced a remarkable 25% surge in just one day. Traders and investors are now faced with a pressing question: should they cash in on the profits or double down on this bullish momentum?
The Bullish Shift Driving PEPE
Recent developments indicate a significant shift in PEPE’s price structure. The memecoin decisively broke past the $0.0000044-$0.0000049 resistance zone, a move that signals bullish momentum. A week ago, PEPE was consolidating within a descending wedge pattern, which hinted at a breakout as buyers absorbed selling pressure. True to this pattern, PEPE surged, forcing a notable bullish structure break on the daily chart.
What’s even more intriguing is the performance of the entire memecoin sector. Over the past 24 hours, the sector has outperformed the broader market with an 8.87% increase in market cap. PEPE’s rally appears to be riding this wave of short-term bullishness, giving hope to traders looking for quick gains.
Price Targets and Risks
PEPE’s bounce from a key support zone at $0.000004 has the potential to reach resistance levels at $0.00000747 and $0.00000950. If this upward momentum holds, traders could see gains of up to 24.9% and 58.4%, respectively.
However, it’s important to remember that memecoin rallies are typically volatile and fast-paced. While the current momentum suggests minimal risk of a reversal after this 20% move, a degree of caution is warranted. Some traders may prefer a risk-mitigated approach by awaiting a retracement to imbalances at $0.0000054 or even $0.0000046 for a better entry point.
PEPE’s Role in a Broader Crypto Rally
The broader crypto market, led by Bitcoin’s surge toward $94.5k, has been creating favorable conditions for altcoins like PEPE. Historically, memecoin rallies are swift and explosive, often leaving little room for retracements. This high-risk, high-reward dynamic makes timing crucial for traders looking to capitalize on the price action.
For those eyeing long-term positions, it’s worth noting the bearish signals on the weekly chart. PEPE’s price remains below its 20- and 50-week moving averages, and other indicators such as the Money Flow Index (MFI) and On-Balance Volume (OBV) have yet to confirm full bullish control.
Should You Buy, Sell, or Hold?
For investors looking to make bold moves, buying into PEPE now could result in swift gains. However, conservative traders might opt to wait for a price correction before entering. Regardless of your strategy, it’s important to understand that memecoin trading is inherently risky and often subject to extreme price volatility.
Enhance Your Trading Game
For those diving into the world of cryptocurrency trading, having tools at your disposal can make all the difference. Consider using a platform like Ledger Nano X, a top-rated hardware wallet that ensures the safety of your digital assets. With easy compatibility and advanced security features, it’s the perfect companion for seasoned investors and beginners alike.
Disclaimer: All investment decisions should be made after thorough research. The information presented in this article is for informational purposes only and does not constitute financial or trading advice.
