PEPE price prediction – Here’s why a ‘disbelief rally’ could be on the cards next
Pessimism is everywhere in the PEPE market right now.
Pepe [PEPE] has shed 4.1% of its value over the last 24 hours, in addition to a 10% decrease in Open Interest. Its daily trading volume also fell by nearly 20%, according to CoinMarketCap data.
The drop in Open Interest alongside falling prices hinted at weak market sentiment. Speculators seemed to be happy to exit the market and did not trust in a bounce.
This might explain why, at the time of writing, the dip to the $0.0000037-local support attracted little capital inflows in the Futures market.
CryptoQuant data revealed that the 90-day Futures Taker CVD was seller-dominated. Over the past month, the CVD has been slowly rising, but it remained within a taker-sell-dominated regime.
Together, these data points indicated that traders and investors should be looking to sell PEPE, instead of buying. On the other hand, does a pessimistic market open the way for a short squeeze?
Examining PEPE price trends
The swing structure has been bearish following the crash in February. This drop reached a low of $0.0000031 on 06 February, and this low has not been breached since then.
This was a common point PEPE had with other memecoins such as Dogecoin [DOGE] and Shiba Inu [SHIB]. PEPE has struggled to breach the $0.0000040 local resistance zone and faced rejection from this supply zone as recently as a week ago.
Meanwhile, the momentum was only faintly bullish at press time. The CMF remained below -0.05 for the most part in recent weeks to signal capital outflows.
Traders need to rush to sell or go short on PEPE contracts. There was a cluster of short liquidations around $0.00000416-$0.00000450. This region is the next candidate for a liquidity sweep before a bearish trend is initiated.
Another way to look at the market is to visualize a range between $0.0000032-$0.0000040. A breakout past the highs would be suspicious, unless it is accompanied by sustained buying pressure and high capital inflows.
Until this happens, traders can wait for a bounce towards $0.0000045 to sell.
Final Summary
- PEPE saw an exodus of speculators recently as market sentiment, especially around memecoins, continued to weaken.
- Pessimism among participants could give rise to a “disbelief rally” towards the $0.0000045 level, but not much higher.
