Is Pepe bound for further losses?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structure and momentum were firmly bearish.
- A retest of significant support levels to the south could provide a bounce in prices.
Pepe [PEPE] ranked as the third biggest meme coin by market capitalization, according to CoinMarketCap. The price trend has been strongly bearish over the past month and signaled further losses were likely.
Read Pepe’s [PEPE] Price Prediction 2023-24
The on-chain metrics also hinted at a bearish outlook. Technical indicators also showed bears were dominant. Bitcoin [BTC] saw a minor bounce in recent hours, but its trend has been bearish in recent weeks. As things stood at press time, it seemed unlikely that PEPE could reverse its losses.
Failure to hold the range lows resulted in a bearish continuationPEPE was trading within a range (yellow) in July. On 27 July, the price retested the range lows as resistance after falling below it a few days earlier. The retest was followed by steady losses for PEPE. A series of lower highs and lower lows since 24 July showed a downtrend in progress.
The RSI reinforced this idea of strong bearish momentum. It has stayed below the neutral 50 mark since mid-July. The OBV has also slowly fallen lower, showing rising selling pressure. PEPE has lost 19% in value since losing the range. Another 30% loss was likely to follow.
The $0.000001 level was the next support level. Yet, if the price fell below the $0.00000103 mark, it would be a sign of weakness from the buyers. This could spur another drop in prices toward the $0.00000082 level, where PEPE reversed its downtrend in June.
PEPE Open Interest slid lower to illuminate bearish outlook
How much are 1,10,100 PEPEs worth today?
Since 14 July, the Open Interest has been in decline. This accompanied the downtrend in price, which highlighted discouraged longs and bearish sentiment. The speculators were not willing to bid on the memecoin, but the majority were not actively shorting PEPE either.
If PEPE can enforce a bullish structure break, buyers’ interest can be rekindled. A price move back above the $0.00000145 level would be needed to flip the higher timeframe outlook bullishly.