PEPEUSDT is displaying a bullish divergence on the 4-hour (4H) timeframe, indicating a potential shift in momentum. Although it has been making lower highs and lower lows, the bullish divergence suggests a possible reversal in the downtrend.
Here's a concise technical analysis with a suggested trading strategy:
Entry: Consider entering a long position through Buy Stop at the breakout above the lower high level, which is $0.00000098.
Stop Loss (SL): Place a stop loss order below the entry point at approximately $0.00000085 to manage risk and limit potential losses.
Take Profit (TP): Set multiple take-profit levels to capture potential gains:
TP1: Set the first take-profit level at a target price ($0.00000111) to achieve a 1:1 risk-reward ratio. TP2: Aim for the second take-profit level at a target price ($0.00000124) to achieve a 1:2 risk-reward ratio.
This trading strategy anticipates a bullish reversal based on the observed bullish divergence. However, it's important to monitor the price action closely and adjust the strategy as needed to adapt to changing market conditions."