PEPE: Exhaustion creeps up on bulls?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bullish momentum stalled at critical resistance level.
- Longs experienced severe losses in the futures market.
Pepe’s [PEPE] 27% surge on 3 July past the local high of $0.00000172 came crashing down as quickly as it started. Price dipped under the key level on 5 July and a retest of the level saw more downward movement.
Realistic or not, here’s PEPE’s market cap in BTC’s terms
With Bitcoin [BTC] experiencing a price correction over the past 24 hours, the signals point to an exhaustion of the bullish momentum that led to PEPE’s recent gains.
Bulls can’t get past the $0.00000172 hurdle
PEPE has been on a bullish roll over the past three weeks. First, it recorded gains of 95% within a three-day period to rally to a June high of $0.00000179. The price rejection at this resistance level dampened the bullish momentum and led to some sideways price movement.
However, bulls rallied strongly again between 2 July and 3 July to register gains of 27% and push past the $0.00000172 resistance. However, the gains were short-lived, as declining volumes gave bears an opportunity to halt the buying pressure.
A 19% dip over the past 48 hours saw PEPE trading at $0.00000156, as of press time.
The on-chart indicators echoed the short-term bearish sentiment. The Relative Strength Indicator (RSI) has been on a dip since 4 July and went below the neutral 50 mark, as of the time of writing.
Similarly, the Moving Average Convergence Divergence (MACD) posted a bearish crossover with a series of red bars below the zero level. Together, it hinted at a strong bearish move that could take PEPE back to the $0.00000134 or $0.00000123 support levels.
Longs caught out by price rejection
How much are 1,10,100 PEPEs worth today?
PEPE longs suffered significant damage in the futures market over the past 12 hours, according to Coinglass. $542.68k worth of long positions were liquidated, accounting for 88.5% of the total liquidations within that period.
Shorts seized the initiative and took a 52.53% advantage of the exchange long/short ratio. As such, the connection between the price action and futures market points to a bearish PEPE in the short term.