Published: January 29, 2025 at 6:51 pm
Updated on January 29, 2025 at 6:51 pm
The crypto market has been on a rough ride, and it’s not just Bitcoin that’s feeling the heat. The king of crypto has been flexing its muscles lately, with its dominance climbing from a low of 54.74% on December 4th to 59.56%. This rise isn’t helping the altcoins and memecoins at all, especially PEPE, which has seen a nosedive in value.
Cryptocurrencies have changed the way we think about finance, offering decentralized solutions that challenge traditional systems. Within this space, memecoins like PEPE have captured the interest of many due to their community-driven ethos and speculative appeal. Yet, the fate of these tokens often hinges on the movements of the larger crypto market, particularly Bitcoin’s increasing dominance.
Bitcoin’s dominance is a crucial barometer in the cryptocurrency exchange market. When it rises, it usually means money is flowing into Bitcoin, leaving less for altcoins and memecoins. This has been the case lately, with PEPE suffering a staggering 38% decline in the last 60 days.
As Bitcoin’s dominance grows, altcoins and memecoins often find themselves in a precarious position. PEPE is a prime example, as it continues to struggle amidst the turmoil and uncertainty of the market. With the FOMC meeting looming at 2:30 PM ET, traders are left to ponder the best day trading cryptocurrency strategies.
Despite these challenges, there are indications that PEPE could be on the brink of a significant move. A recent analysis from a crypto expert trader draws a striking parallel between PEPE’s current price action and the explosive rally it experienced in late 2023.
Back in December 2023, PEPE formed a local bull trap before correcting into a critical demand zone, the Monthly FVG+. After consolidating, it bottomed out on February 5th, leading to a remarkable 1,160% surge over the next 38 days, peaking on March 14th. Now, in 2025, we see a similar pattern unfolding, with PEPE entering its monthly FVG+ support zone and showing bullish divergence with Bitcoin.
The near-term support zone for PEPE rests between $0.00001135 and $0.00001350, the Monthly FVG+ area. This zone is pivotal for determining if PEPE will maintain its footing or embark on a reversal. On the upside, the first major resistance level is at $0.00001900, with a breakout zone at $0.00002180. If the momentum mirrors early 2024, we might witness another massive rally, potentially matching the previous 1,160% surge.
Outside factors are equally important when assessing trading strategy for cryptocurrency. The upcoming FOMC meeting is particularly noteworthy, as it can sway market sentiment.
The decisions made during the FOMC meeting regarding interest rates can lead to dramatic price shifts in cryptocurrencies. A dovish approach, suggesting rate cuts or steady rates, tends to spike prices, while a hawkish one can plunge them. Even the speculation around these meetings can affect Bitcoin’s price and the broader crypto market.
Wider economic and political events can also weigh heavily on investor sentiment. For instance, speculation about a crypto-friendly U.S. administration and the passage of stablecoin legislation could instill confidence, benefiting tokens like PEPE.
While the technical setup suggests a breakout for PEPE, external factors—including Bitcoin’s dominance, the FOMC outcome, and overall investor sentiment—will play a critical role in determining its short-term path. Maintaining the Monthly FVG+ support zone is essential for bulls, and if this pattern holds, PEPE could be poised for another dramatic rally.
In essence, the potential for a PEPE rally exists, but navigating the crypto and trading landscape’s complexities will be crucial. Strong investor interest and favorable market sentiment will be necessary to sustain any gains. Traders should watch key support and resistance levels closely and stay tuned to the external influences shaping the crypto trading markets.
Access the full functionality of CryptoRobotics by downloading the trading app. This app allows you to manage and adjust your best directly from your smartphone or tablet.
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