PEPE price correction stalls at this level: Will short-term sell pressure increase

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• PEPE’s recent price rally stalled near $0.000002082.
• There was elevated short-term selling pressure. 

Pepe [PEPE] saw a decisive price rebound on 12 May after sustaining an extended correction. The recovery was further boosted by Elon Musk’s tweet, which had a semblance of the meme coin’s mascot. 

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PEPE’s team quickly picked up the tweet, pushing PEPE to rally over 70% between 12-13 May. However, at press time, PEPE’s recovery hit a snag near $0.000002082. It could extend lower unless current market conditions improve abruptly for the better. 

seize the memes of production $PEPE https://t.co/iVKu7YX82g

— Pepe (@pepecoineth) May 13, 2023

More sell pressure?

PEPE made a high on 5 May after hitting $0.00000451. However, the gains were reversed after a sharp correction that saw PEPE plunge over 70%. However, the drop eased near the $0.00000115490 support and inflicted a recovery. 

The over 75% price recovery has since hit an obstacle at $0.000002082, setting PEPE for a likely downtrend, especially if BTC fails to reclaim $27k in the next few hours/days.

A close below the 50-EMA (Exponential Moving Average) of $0.00000180379 could expose PEPE to more selling pressure. The 50-EMA also lines up with a key range low on the 4-hour timeframe between 9-10 May. 

Such a downswing could sink PEPE to retest the lower support levels of $0.00000115490 or $0.0000085791. These levels can act as short-selling targets.

Source: PEPE/USDT on TradingView

A session close above $0.00000208244 will invalidate the bearish thesis. Such an upswing could offer bulls the upper hand to retest the $0.00000257615 resistance level or the swing high on 5 May. 

Meanwhile, the RSI hovered near the median, a neutral position that shows the market could go in either direction. However, the OBV (On Balance Volume) and CMF (Chaikin Money Flow) dipped slightly – a drop in demand and capital inflows that could tip the scale in favor of the bears.

Shorts dominated, but …

Source: Coinglass

How much are 1,10,100 PEPEs worth today?

According to Coinglass, PEPE’s long/short ratio showed shorts dominated 53% within a span of four hours before press time. It underscores a bearish short-term outlook that could sink PEPE lower. 

However, open interest (OI) rates weren’t easing despite the slight price drop witnessed at press time. It means that the demand for PEPE was steady in the derivatives market – a bullish signal which could offer bulls little hope. But traders should track BTC for more optimized trades.

Source: Coinglass