PEPE prints a new low – Is a recovery likely?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- PEPE dropped below $0.00000082, hitting a new all-time low of $0.00000069.
- Open Interest rates eased, indicating a dip in demand from the derivatives market.
Pepe [PEPE] has been in an overall downtrend since mid-July. It made lower lows and lower highs over the same period and inflicted a new all-time low of $0.00000069 at press time. The memecoin shed over 35% of its value in August, and bearish pressure didn’t lessen in early September.
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Meanwhile, Bitcoin [BTC] defended the range-low at the time of writing. There are less than 10 days to the FOMC Meeting (19-20 September). Most interest rate traders, >90%, were inclined towards the Fed, keeping the current 5.25% – 5.5% target range. How BTC would react to the Fed’s September announcement remains to be seen.
PEPE on a steady drop
The price action in Q3 chalked a descending channel, underscoring sellers’ leverage. However, PEPE hasn’t cracked the channel’s range-low over the same period. Ergo, we could see a positive reaction at the range-low near $0.00000063 if $0.00000069 fails to hold.
The rebound must clear the mid-range level of 23.6% Fib level ($0.00000087) or $0.00000082 to target the range-high near the daily bearish order block (OB) of $0.00000105. That’s a 50% potential rally from the press time level to the range-high.
Such a pump could likely be around mid-October if the SEC approves Ethereum [ETH] ETF (Exchange-traded funds), boosting the broader market sentiment.
However, a bearish breakout from the descending channel could push PEPE to another new all-time low near $0.00000051.
Meanwhile, the RSI and CMF had negative readings at press time, demonstrating weak buying pressure and capital inflows.
Realistic or not, here’s PEPE’s market cap in BTC term
Demand eased in the derivatives market
PEPE’s Open Interest rates improved around 1-7 September but eased afterwards. It shows demand for the PEPE in the derivatives market waned over the weekend. It underscores a short-term bearish bias.
However, sellers should be cautious despite the bearish bias. The CVD (Cumulative Volume Delta) dropped at the end of August, reinforcing bear leverage. But the metric wavered from 7 September, meaning the price could go either direction.