PEPE Retests Its 50% Fibonacci Level as Large Holders Increase Net Flows by 1645%

Pepe has witnessed a steep correction toward the recently broken 50% Fibonacci level, risking a potential bearish turnaround.

Pepe price has tested the 50% Fibonacci level from the last swing high. Can large holders net flow surging by 1,645% help the meme coin bounce back toward $0.00001550?

On-chain Data Supports Bullish Chances

According to IntoTheBlock’s data, large holders’ Net Flow has surged by 1,645% over the past seven days. On June 11, the Net Flow reached 854.64 billion.

This tracks the net flow of holders who own 0.1% to 1% of the circulating supply. A positive value indicates a greater inflow of coins from large holders, while a negative value signifies a larger outflow.

At the time of writing, Pepe trades at $0.00001242, with an intraday pullback of 0.64%. This reflects a lower price rejection from the 24-hour low of $0.0000121.

After a minor bounce, the meme coin is holding above the 50% Fibonacci level at $0.0000122. However, recent data on Wednesday shows a marginal increase in selling pressure, with a 4.80% pullback.

But due to prior bullish momentum resulting in a golden cross and hinting at a bullish crossover in the 100-day EMA lines, the meme coin is likely to sustain the prevailing uptrend.

Further supporting these bullish prospects, the MACD and signal lines are expected to flatten near the zero line, signaling a potential bullish crossover.

Based on price action analysis, an immediate bounce-back in Pepe could face resistance at $0.0000155, followed by a key resistance level at $0.00001705.

On the downside, a candle close below the 50% Fibonacci level could test the 200-day EMA at $0.00001155.

Optimism Remains High In PEPE Derivatives

Highlighting optimism in the derivatives market, the Open Interest witnessed a 0.30% rise to reach $577.44 million.

However, Long Liquidations went up to $1.97 million in the past 24 hours. This is more than double the Short Liquidations, which amounted to $920,000.

It signals a significant wipeout of traders who were holding bullish price movements, ultimately decreasing the Long-to-Short Ratio to 0.9516 as Short positions increase.

Despite the increase in Short positions, the overweighted Funding Rate remains steady at 0.0091%. This indicates a sustained commitment to bullish activity.