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
Source: PEPE/USDT on Trading View
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
Source: Coinglass
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.
Source: Coinglass
