- PEPE’s bearish trend continued as it fell below the 20-day and 50-day EMAs, but near-term volatility could offer some opportunities
- Memecoin’s derivates data revealed cautious optimism for buyers
The memecoin market’s sentiment improved as its total market cap surged by 10% to over $42 billion over the past 24 hours. Additionally, the Crypto Fear & Greed Index showed a ‘neutral’ reading after hovering in the fear zone for a long time.
PEPE lost all its near-term bullish edge after it recently declined below its 20-day and 50-day EMAs after reversing from the $0.0000127 resistance. However, the recent rebound from the memecoin’s immediate support level has set the stage for buyers to re-enter the market.
PEPE was trading at $0.0000086, at the time of writing.
Can PEPE bulls reverse the near-term trend?
Source: TradingView, PEPE/USDT
PEPE had entered a relatively long-term bearish trend, as the price action kept marking lower highs and lows while losing crucial support levels.
In the meantime, PEPE formed a descending channel pattern on its daily chart, depicting a relatively high bearish edge, and fell below its 20-day and 50-day EMAs.
Here, it’s worth noting that PEPE recently saw an expected breakout from its descending channel, one that helped the buyers retest the $0.0000127 resistance in mid-July.
However, the bears stepped in to provoke a steep downtrend from this resistance level amid market uncertainty. This downtrend has now found support at the confluence of the horizontal and diagonal support levels near the $0.0000065 – $0.000007.
The buyers would now aim to provoke a near-term uptrend. Alas, the $0.0000087 resistance could pose near-term hurdles. Should PEPE find a close above this level, bulls would aim to retest the $0.0000127 in the coming sessions.
On the other hand, if the broader market sentiment continues to deteriorate, the memecoin could test the next major support level at $0.0000049.
The Relative Strength Index (RSI) continued to show a bearish edge but was on an uptrend after dipping into the oversold zone. A likely close above the 50-level can affirm the ease of selling pressure.
Also, the Awesome Oscillator finally showed a green line after PEPE’s recent gains – An early indicator of a bullish edge.
Derivates data revealed THIS
Source: Coinglass
The hike in Open Interest over the last 24 hours suggested more traders have been entering the market, possibly anticipating further price movements in PEPE.
While there’s a near-balance between long and short positions, the slight lean towards shorts (with a long/short ratio of 0.9736) may be a sign of cautious optimism. However, the significant liquidations, especially on the short side, highlighted volatility and the potential for further price action.
