Why I Don't Consider Trading Pepe Right Now - Ichimoku Deep Dive

Why I Don't Consider Trading Pepe Right Now — An Ichimoku Deep Dive Into Pepe 🔍

I received a couple of requests to provide some more Ichimoku analyses. I am happy to do so since Ichimoku is one of the most reliable indicator systems available. It can provide tons of insights about an asset, trade signals, and parameters for a successful trade setup.

So, let's dive into Pepe's Ichimoku state of the nation.

💡 Overall, the Ichimoku indicators do not support a trade setup regarding Pepe. However, there are bullish signs that could quickly change the status.

1️⃣ Let's start with a bullish aspect: Just four days ago, the so-called Base Line (blue) crossed the Conversion Line (Gray) to the upside. This is considered a bullish sign. However, since the cross happened below the cloud, it's a rather weak bullish signal.

2️⃣ Pepe is currently fighting to cross the resistance build of Span B (red line) and the cloud simultaneously ( ~0.000012). A close above this level would indicate further bullish momentum, and the second is the previously mentioned crossover.

3️⃣ Let's discuss the bearish signals. The future cloud indicates a bearish forecast (red cloud). Additionally, the space between the sides of the cloud is rather ample, so we can't expect a change soon.

4️⃣ Based on the horizontal movement of the cloud, Pepe does not have a strong trend at the moment. To trade the asset, you want a rising or falling cloud.

5️⃣ Often forgotten, yet so important. The so-called Chikou (orange line) isn't "free" — meaning it is almost at the same level as the price candle. Again, when trading an asset, you prefer this indicator to be above/below the price.

🧵 Summarized
Based on the missing trend and the rather bearish outlook, I would suggest trading Pepe now. To reevaluate this, we need the price to close clearly about the cloud and Span B (acting as major resistance).

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