The 50% retracement level for PEPE is a crucial indicator in technical analysis that helps traders identify potential support and resistance zones2. It represents the midpoint of a recent significant price movement and is commonly used in conjunction with other Fibonacci retracement levels to predict potential trend reversals or continuations. In the case of PEPE, the 50% retracement level is being closely watched to determine whether the memecoin will continue its upward trend or experience a pullback.
The 50% retracement level and the daily RSI indicate a possible range formation for PEPE. However, rising buying pressure and the liquidation heatmap provide opposing signals. While the memecoin struggles to break past a local resistance level, it shows signs of forming a range, but a bullish chart pattern is also possible3.
Rising buying pressure indicates an increase in demand for an asset, which can potentially lead to price appreciation. On the other hand, a liquidation heatmap shows where traders' positions may be liquidated due to adverse market movements. If the heatmap indicates a high number of potential liquidations, it could suggest market instability or a potential price drop. Thus, rising buying pressure and a bearish liquidation heatmap can provide conflicting signals for traders.