The meme coin world has been abuzz with the recent surge in PEPE [PEPE] prices. After months of consolidation and range-bound trading, the third-largest meme coin has finally broken free from its resistance levels. This 58% upward move in the past two weeks, coupled with a bullish market structure, has sparked excitement among PEPE holders.
However, the question remains: Should investors take profits now or continue holding on in anticipation of further gains?
A Cautious Approach
While the current bullish trend appears promising, it’s essential to approach with caution. The weekly chart indicates that closing above $0.00000986 could solidify a bullish structure. However, a rejection from the $0.0000123-$0.000013 zone remains a possibility. Swing traders who have already entered positions might consider taking partial profits to secure gains.
Technical Indicators Support Bullish Sentiment
Several technical indicators reinforce the bullish outlook. The Chaikin Money Flow (CMF) reading of +0.27 suggests strong buying pressure. Additionally, PEPE’s movement above the 50-day moving average (DMA) indicates a shift in long-term momentum.
Also Read: Dog-Themed Tokens Take Center Stage As WIF, SHIB, and PEPE Fuel Altcoin Rally
Psychological Resistance
The $0.00001 round number is a psychologically significant level. PEPE’s current trading above this level, coupled with high buying pressure, suggests a potential conversion to a support zone. However, data from IntoTheBlock reveals a large resistance zone between $0.000011 and $0.000012. Many addresses bought PEPE within this range, and some may be tempted to sell if the price fails to continue its upward trajectory.
Conclusion
PEPE’s recent breakout is a positive development. However, investors should exercise caution and consider taking partial profits to secure gains. The market remains volatile, and a potential rejection from the $0.0000123-$0.000013 zone could lead to a temporary pullback.
Ultimately, the decision of whether to hold or sell depends on individual risk tolerance and investment goals. It’s essential to conduct thorough research and consult with a financial advisor before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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