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PEPE is hitting new all-time lows – Is a reversal likely?

2min Read

PEPE’s short-term recovery hangs in the balance ahead of the May CPI data and FOMC meeting.

PEPE is hitting new all-time lows - Is a reversal likely?

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • PEPE continues to hit new ATLs in June 
  • Selling pressure persists in spot and futures markets 

Q2 2023 has cleared the market enthusiasm seen towards the beginning of the year. Recent selling pressure has obliterated the budding frog-themed meme-coin, Pepe [PEPE]. It debuted in Q2 and PEPE’s initial buzz around possibly overtaking SHIB or DOGE has fallen flat amidst Q2’s bearish pressure. 

Is your portfolio green? Check out the PEPE Profit Calculator 

However, this week could see significant volatility and price swings. United States’ CPI data for May will be released on 13 June, followed by the US FOMC meeting on 13/14 June. A hike in U.S CPI data and a dovish FOMC stance could rally Bitcoin [BTC] and PEPE. 

Will the trend of ATLs ease?

Source: PEPE/USDT on TradingView

PEPE has been making new all-time lows (ATLs) in June. On 5 June, it hit a low of $0.00000095, closing below the mid-May swing low. 

At the time of writing, it made another low of $0.00000084 on the 4-hour chart. This captures the shrinking market as chalked by the descending channel (white). 

Over the weekend (10/11 June), PEPE faced rejection at the range high ($0.00000120) and eased below the mid-range. So far, the mid-range has become a key resistance level and could drag PEPE to the range low of $0.00000073. 

However, PEPE could smash the mid-range barrier and target the range high around $0.00000108. The upswing is likely if the U.S CPI data and the FOMC announcement are positive. A bullish breakout could set PEPE to target $0.00000120, $0.00000132, or the 50% Fib level ($0.00000152). 

Meanwhile, the RSI and Accumulation/Distribution indicators moved sideways, indicating a likely narrow consolidation before a rally or price dump. 

What’s the state of PEPE’s sell/buy pressure?

Source: Santiment

Sellers heavily dominated the spot and futures markets, at the time of writing. For example, the supply on exchanges (red line) has risen steadily since mid-May, indicating more PEPE moved into CEXs (central exchanges) for offloading. 

Over the same period, supply outside exchanges, which tracks short-term accumulation, dipped. It captures the rising short-term selling pressure in spot markets. 

How much are 1,10,100 PEPEs worth today

 The sentiment is similar in the futures market. Short positions dominated at 53% against long positions (47%) on the 4-hour timeframe at press time. It suggested that more traders have been shorting the asset – A bearish outlook. 

However, the sentiment could change if the two major U.S economic variables (CPI and Fed rate) are positive.

Source: Coinglass


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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