PEPEUSDT continues its weakness relative to 
BTC and broader "risk on" signal markets such as $NQ! This latest dip was driven by an extremely negative news event - Grifter Gensler and his band of goons at the SEC are employing some bank-collapse-contagion-red-herring tactics by suing Binance. This news allowed the bears to take control and we see the temporary decoupling from the usual tight correlation with the Nasdaq break:
In such events, traders with massive positions such as wallet 0x4614 move to protect their capital and sold huge positions to cut short term losses, as the market readjusts to lower key levels.
If this was a catastrophic sell off event, we would not have seen a bounce off key support at 0.00000095, and the last remaining support for
PEPEUSDT 0.0000005 would have fallen. The 0.0000005 level is revealed by my TA as the "last stand" support level for $PEPEUSDT. Breakdown BELOW this level would be a pivotal bearish moment and we would need a week or so to establish relatively "strong" support levels, not just daily price ranges, at lower price levels.
However, this is not what happened during Bitcoin's multi thousand dollar move down which means that short term volatility can continue.
Using a three-way outcome/decision matrix - down-neutral-up - we can prepare for three scenarios and deploy capital accordingly.
The first outcome which is down, is a breakdown below the 095 handle and a cascade towards 056 handle (red box range in title image). As
PEPEUSDT is tightly correlated with BTC and 
HYG (BBB bonds), this would likely mean those two broader markets would have continued lower. If we look at BTC key levels, again we're not in catastrophe scenarios at all, a nice bounce off the $25.5k level and bulls will target $25.9k as next resistance: And
HYG levels also looking healthy, above 74.3 support with 75.3 as overhead resistance.Secondly in the neutral outcome we find a new range in
PEPEUSDT bouncing between 0.000000950 and 0.00000108. A perfectly acceptable outcome for active traders as this offers a nice 10% intra day range.Thirdly in the
PEPEUSDT bull case we need to see a breakthrough in BTC above $25.9k level and a move towards its next major resistance level now at $27k.Trade closed: target reached
Trade closed, 108 level hit.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.