A short-term bearish bias would develop should PURPE fall below $0.00014.
- Purple Pepe has a strongly bullish structure on the 4-hour chart It is not yet listed on major exchanges- which could enhance its bullish case
Purple Pepe [PURPE] rallied 1,940% in just over a week but saw a deep pullback in the past 12 hours. The price of the memecoin is down 33% from its all-time high at $0.0003713.
In the past 24 hours alone, the token has increased by just over 120%, and its daily trading volume has surged by 190%. The Bitcoin [BTC] pullback from $99.8k that began on Monday hasn’t halted, but this did not stop the PURPE rally.
The sentiment behind Purple Pepe remains bullish. The $86.35 million market capitalization meme began trading in June 2024. The trading volume was below $1 million from late August until November 14th.
The increased trading volume in the past two weeks supported the idea that genuine demand spurred PURPE’s swift rally. Will market sentiment remain as strongly bullish in the coming days and weeks?
Purple Pepe recovering from the pullback
Source: PURPE/USD on CoinMarketCap
The market structure of the Purple Pepe meme has been bullish since the 13th of November when the token rallied 230% in 8 hours. This coincided with the increased trade volume, a sign of increased trader participation.
Small-cap meme coins have been registering rallies of 100% or even 1,000% but end up retracing most of those gains quickly. Hence, sub $10 million market cap Solana coins going up 10x within a week is not always a sign of continued gains. Pressure from profit-taking and lack of new demand can set these coins back massively.
Smart, professional traders watching these hundreds of tokens and noticing a spike in social media engagement or trading volume can bet small on these tokens, looking for more gains.
Is your portfolio green? Check the Purple Pepe Profit Calculator
As things stand, Purple Pepe has retested the 50% Fibonacci level at $0.0001966 and rebounded well. The bullish structure persisted. A short-term bearish bias would develop should PURPE fall below $0.00014.
Purple Pepe is yet to be listed on major centralized exchanges- an event that could boost its visibility and hence demand.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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