- PEPE price was consolidating at the $0.0000077 resistance level after a successive bullish rally.
- Steady token supply clashed with unclear short-term price direction.
Pepe [PEPE] was testing a key resistance level of $0.0000077 at press time. This comes after the meme coin rejected a key bullish pennant at $0.0000063 and acquired a massive surge of 20% to the recent trading price.
The $0.0000077 level emerged as a barrier to the bullish momentum breaking out to test the higher resistance at $0.0000091.
This consolidation phase precedes a period of upward movements, raising market curiosity on whether the bull rally will continue or not.
Source: TradingView
The stochastic RSI indicator for PEPE hinted at a bullish divergence. This suggests the ongoing consolidation might lead to an upward movement. However, a bearish run cannot be written off since the stochastic RSI was approaching an overbought zone.
The bullish pennant pattern on the chart strengthens the chance of a breakout. However, the $0.0000077 resistance level still poses a major challenge for the bulls to beat.
PEPE whales are watching
Taking a closer look at market trends, the Coinglass liquidation heatmap revealed some interesting trends on whale activity.
The data showed that PEPE whales are returning. Key market participants are positioning themselves around current prices, which might spark excitement if PEPE makes a significant move.
Source: IntoTheBlock
Is supply stability becoming a long-term anchor?
Despite the short-term ups and downs, PEPE’s total supply has held steady in recent months. This consistency could act as a long-term price anchor if demand keeps up.
Source: Santiment
The existing liquidation pool of 1.43 million at the $0.0000075 level supports the aforementioned PEPE bullish sentiments. This massive liquidation may act as a price magnet to push the prices above the key resistance level.
Source: Coinglass
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Looking ahead, market participants are keeping an eye on that $0.0000077 resistance level. Pushing past it could send PEPE rocketing up to its recent high of $0.0000091.
If it fails to break through, we might see it drop back down to support around $0.0000069.
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