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PEPE’s downtrend persists – More shorting gains likely?

2min Read

PEPE’s impressive recovery on 6 June didn’t lead to a bullish bias and could offer sellers more edge.

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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

  • Trendline resistance has become a key roadblock
  • CVD spot fluctuated and could favor sellers

Pepe [PEPE] traders, especially bulls, were ecstatic after a strong upside move on 6 June. This was a day after the Binance lawsuit, and PEPE rallied over 15% on the daily performance. 

However, the hike eased at key trendline resistance. The trendline has been a roadblock since 10 May and could persist unless Bitcoin [BTC] flips to a bullish bias on the higher timeframe.


Is your portfolio green? Check out the PEPE Profit Calculator


Will the bulls falter again at the roadblock?

Source: PEPE/USDT on TradingView

Since early May, PEPE’s overall price action chalked a descending channel (white), reinforcing the downtrend momentum and bearish bias on the lower timeframe. The upper range of the channel coincides with a trendline resistance (orange). 

The price faced rejections at the range high/trendline resistance since early May – making it a key obstacle. PEPE could see another negative price reaction if the trend persists. Hence, the memecoin could drag lower to the mid-range of $0.00000102 or range low of $0.00000086. 

A drop to the range low could make PEPE form a new all-time low (ATL). If that’s the case, shorting at the trendline resistance ($0.00000120) could offer a good risk ratio, targeting mid-range or range low. 

A close above $0.0000135 will invalidate the bearish thesis. But bulls will only gain the upper hand if they push beyond the 23.6% ($0.00000153) Fib level. The Fib tool was plotted between a lower high on 7 May and a lower low on 12 May. 

The support zone (cyan) is a bullish order block (OB) formed on the 12-hour chart on 12 May. It was breached temporarily after the Binance lawsuit, and remains to be seen if it will hold.  

Meanwhile, the RSI was below the 50-mark as OBV edged lower, reinforcing a dip in buying pressure and demand for PEPE. 

CVD spot fluctuated

Source: Coinalyze


How much are 1,10,100 PEPEs worth today?


The CVD spot, which tracks buying and selling volumes, rose sharply from 6 June as BTC reclaimed $27k, down from $25k. However, the PEPE’s buying pressure and volumes have wavered, as illustrated by fluctuations in CVD in the past two days.

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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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