PEPE price was one of the hardest hit altcoins in the weekend liquidation event, with the price falling more than 60% in a matter of minutes. This led to a series of liquidations as traders rushed to save their positions. Now, even though the liquidation event is over and the market is looking to bounce back, things are starting to look up for the price of PEPE, which one analyst believes is set for a massive rally from here.
The price of PEPE is set to rise
Cryptocurrency analyst MMBTtrader took to TradingView to share his view on what could happen to the price of PEPE. According to the analyst, the decline in PEPE prices was expected, but not as quickly as it happened. However, it plays a role in the bigger picture and the reset that the memecoin needs.
MMBTtrader explains that PEPE's price path is now clear as it is ready to rise. They point out that the long red candle that led to the altcoin's rise could be the result of market manipulation. This is an idea shared by many in the industry, especially with many altcoins collapsing by up to 80% in a single candle.
However, the cryptocurrency analyst believes that a move like this is only a prelude to something big coming in the market. With liquidations rising to over $19 billion on Friday, this marked the largest liquidation event in cryptocurrency history, and many believe this is a necessary reset for the market.
The cryptocurrency analyst explains that the move was actually necessary to chase out leveraged traders, regardless of their positions. In the wake of all this, most long-term traders were affected, no matter how high or low their leverage was. Data from Coinglass shows that some cryptocurrency exchanges recorded as much as 96% of all liquidations that day through long buys.
Looking at the chart shared by the cryptocurrency analyst, PEPE price has bounced back above the key monthly support. This support is located at the $0.000005 level, and since the bulls have held above it so far, this could be the starting point for the next bullish rally.
If this level continues, there are multiple levels of interest for PEPE price. The first stop on the bounce will be the $0.00001 level, where most of the resistance over the past few months has been lying. However, once it breaks, this would pave the way for a rally as it moves higher quickly.
The next stage of the rise will be the $0.000013 level where the bears start fighting. However, at this level, the price of PEPE would be approximately 100% higher. Then the next major level will be $0.000016, which is the point to break.
If all resistances along the way are crossed evenly, the cryptocurrency analyst sees the price of PEPE reaching all-time highs. The target from here will be the $0.00003047 level, which the analyst refers to as the ultimate target, which is to complete the move by 230%.
Featured image from Dall.E, chart from TradingView.com
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