PEPE bleeds: Can late sellers still benefit?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- PEPE posted week-on-week double-digit losses since 15 August.
- Open Interest rates spiked as demand improved at $0.00000084.
Pepe [PEPE] has seen week-on-week double-digit losses. Between 14-20 August, the memecoin shed around 18% and was down 20% between 21-27 August. Bulls attempted to defend the $0.00000084 support at press time, but late sellers could land an opening.
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Interestingly, PEPE decoupled from Bitcoin [BTC] between 10-14 August and followed other contrarians like Shiba Inu [SHIB]. PEPE posted over 25% gains against BTC’s over 3% losses over the same period.
But the bearish pressure from mid-August caught up with the memecoin, tipping sellers to reap big.
Can late sellers enjoy some action?
The breaker block and resistance zone, near $0.00000136, initiated the price reversal in mid-August. The breach of the next support level of $0.00000105 emboldened sellers to seek more ground beyond the $0.00000084.
But the bulls appeared determined to defend the $0.00000084 level as of publication time. If so, PEPE could push forward but falter at the daily bearish order block (OB) of $0.00000104 – $0.00000113 (red).
The bearish OB also aligned with the previously cracked $0.00000105 support. So, the area is a bearish zone and could set PEPE to a price reversal. Such a move could offer late sellers re-entry positions at $0.00000105, with a take-profit target at $0.00000084.
An H4 candlestick session close above the daily bearish OB ($0.00000113) will invalidate the short set-up.
The RSI and CMF were negative but registered upticks, demonstrating signs of a possible short-term reversal to the upside.
Are near-term bulls out to play?
According to Coinalyze, the CVD (Cumulative Volume Delta) spiked on 25 August, reinforcing bulls’ fight for market control as they sought to defend the $0.00000084 level.
How much are 1,10,100 PEPEs worth today?
The above bulls’ efforts were marked by a jump in Open Interest (OI) rates from $10 million to around $20 million – double the increase within hours. That’s a massive demand for PEPE in the derivatives market.
The short-term bullish bias in the futures market could fuel PEPE to grace the daily bearish OB. Traders should track BTC movement before shorting the memecoin.