Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- PEPE’s strong rally was interrupted by a pullback and the structure turned bearish.
- The retracement may go a bit deeper, but the previous impulse move up can likely continue.
From mid-May to mid-June, PEPE prices were on a downward trend. Around June 10, prices started to consolidate within a range formation. But over the past ten days, the bulls have made a resounding comeback.
Realistic or not, here is PEPE’s market cap in BTC terms
They rallied 96.7% after the bullish structure break. Still, the trading volume started to decrease in the last few days. This led to concerns about a decrease in demand and capital outflow from the market.
PEPE’s price action showed that the bears once again had the upper hand
Source: PEPE/USDT on TradingView
The breakout of the bullish market structure on the 6-hour chart was shown in cyan. It took place on June 16 and was followed by the near 100% rally. In the past three days, PEPE’s bullish momentum began to slow.
The RSI fell below the neutral 50 on June 28 and on the same day prices fell below the recent higher low of $0.00000145. Highlighted orange, this represented a shift in the market structure back to a bearish bias.
Last week’s rally was used to plot a series of Fibonacci retracement levels. They showed that the 50% and 61.8% levels were likely support levels where PEPE bulls can force a reversal. However, the OBV has reversed nearly all of its June 20 gains, indicating intense selling pressure in the market.
The MVRV ratio pointed to more profit taking by holders
Source: Sanitation
Weighted sentiment remained negative. Meanwhile, the consumed age saw a few sharp spikes in recent days. It was accompanied by a fall in PEPE prices, suggesting greater token movement in the form of selling pressure.
How much is 1, 10 or 100 PEPE worth today?
The MVRV ratio was positive but decreased. This showed that short-term holders who made a profit realized their gains, adding to the selling pressure behind the meme coin. Overall, PEPE price action and sentiment favored the bears. The Fib retracement levels may be of interest to traders as a reversal of these levels was possible.
