On January 11th, the meme coin Pepe (PEPE) reached a peak of $0.00000149, but it dropped to $0.0000011 by the following day. This indicates the return of sellers to the market, preventing the coin from retesting the $0.0000015 level. Over the past week, the price of PEPE has increased by 6.4%, but the $0.0000015 level has previously acted as resistance.
For further growth in PEPE's price, a significant number of bullish orders are needed to overcome this zone. If market liquidity matches buyer demand, there may be an additional 5% increase in price.
The Chaikin Money Flow indicator shows a decrease to 0.07, which could suggest a potential breakthrough below the support level. However, as the indicator has not entered the negative zone, there is a chance that PEPE will hold above $0.0000012.
The RSI shows a slight increase from the average level, but significant selling pressure could negate the bullish trend. On the 4-hour PEPE/USD chart, there is an increase in capital inflow, which may contribute to price growth. However, in the derivatives market, demand for PEPE has decreased, as seen in the declining open interest and 24-hour volume.
A decrease in open interest during a price increase can indicate weakening of the uptrend. Nevertheless, according to Coinglass data, the funding rate has started to rise, indicating an increase in the cost of maintaining open contracts. A positive funding rate suggests that long positions are paying shorts to stay in the game, while a negative rate indicates bearish sentiment.
At the time of writing, the PEPE funding rate was 0.011%, indicating that the cryptocurrency is trading at a premium compared to the spot price. This also means that long positions are more aggressive but are not yet receiving rewards for their bets.
Overall, the current price movement of PEPE, combined with the rising funding rate, suggests the possibility of reaching resistance at the $0.0000015 level.
