2.20% Weekly Gain: Can PEPE Price Maintain This Momentum?

Today, the PEPE price rose slightly by 2.31% over the past 24 hours. After many days, the green numbers hint at bullish gain, but market observers suggest an 11% decline. 

PEPE Price has been grabbing headlines recently, maintaining a bullish trend and climbing 2.20% over the past week. However, while the memecoin appears to be forming a bullish structure on the charts, several warning signs suggest that this uptrend could face resistance. Let’s dive into a deeper analysis of PEPE’s recent updates and news.  

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Bullish Pattern Emerges: Will It Hold?

As investors take a look at the 4-hour chart, PEPE is currently trading within an ascending triangle, a bullish pattern that typically signals a potential breakout to the upside. 

In technical analysis, this setup often ends in an upward breakout. But there’s a catch: each time PEPE updates its resistance line and leaves behind long wicks instead of strong, full-bodied candles. This suggests that sellers are stepping in hard at these levels, pushing prices down before a full breakout can happen.

Bearish Indicators Are Still in Play

Despite the bullish chart pattern, not everything supports a price rally. A key red flag is the formation of a death cross, when the 20-day Simple Moving Average (SMA) dips below the 200-day SMA. This is often seen as a bearish signal and currently aligns with the pullback towards the triangle’s support line.

Another concern is the Accumulation/Distribution (A/D) indicator. It’s showing that PEPE has entered a distributive phase, a time when more traders are selling off the asset. This could drag prices lower if selling pressure continues.

Volume and Momentum Seem to Be Fading

Another piece of the puzzle is the Price-Volume relationship. While PEPE managed to gain 1.49% in the last 24 hours, trading volume dropped by a steep 36.4%. When price increases but volume falls, it usually hints at a weak rally. In simple terms, the rise isn’t being supported by strong buyer interest, making it more vulnerable to a reversal.

Add to this the recent negative Funding Rate (-0.0097), and the picture gets even more concerning. This metric shows that short sellers are paying to keep their positions open, indicating they’re still in control.

Spot Traders Still Believe in PEPE Price Update

Even with the broader market signals leaning bearish, not everyone is giving up on PEPE. In fact, spot traders see this dip as a buying opportunity. Over the past week, they’ve accumulated $37 million worth of the token.

For context, the last major accumulation happened on March 3rd, when $53 million in PEPE moved into private wallets. This recent activity could be an early signal that investors believe PEPE will bounce back, and they’re getting in before a possible rally.

Final Thoughts: A Cautious Outlook for PEPE News

To sum it up, the PEPE price action shows a classic case of mixed signals. While there’s a bullish structure forming on the charts and spot traders are showing interest, momentum and volume trends suggest caution. Until PEPE breaks out of its current pattern with strong confirmation, it’s wise to watch closely and avoid hasty decisions.

For now, PEPE news is talking about the recent ups and downs of the coin.