Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Pepes [PEPE] the frenzy seemed to fizzle and drag the prize with it. A recent report dissected the uncertainty and future surrounding the month-old frog-themed meme coin.
From over $1 billion in market cap at its peak, PEPE is down to less than $500 million at the time of going to press, according to CoinMarketCap. That means it has shredded more than 50% of its value on the price charts.
The price of PEPE was $0.0000011922 at the time of going to press, down about 7% in the past 24 hours. The dive followed From Bitcoin [BTC] sharp drop from the $27k price zone, leading PEPE to retest a key demand zone.
Will the demand zone trigger a price reversal?
Source: PEPE/USDT on TradingView
In early May, PEPE saw a strong corrective jump in the demand zone from $0.000000850 – $0.000001188 (Cyan). The demand zone is also a bullish order block (OB). There was another substantial rebound from the above level in mid-May, making it an important demand zone.
However, a retest of the zone at the end of May only led to a soft price recovery, dispelling hopes of a price reversal. The recent BTC move has put more bearish pressure on the meme coin, forcing it to retest the bullish OB at the time of writing.
The weak BTC could expose PEPE to more selling pressure, and a drop to $0.0000008579 or lower is achievable.
Conversely, a bullish BTC and subsequent $28k retest could push PEPE into a strong recovery. Moving north, resistance levels were at $0.0000015155, $0.000001759 and $0.000002082.
How many Worth 1,10,100 PEPEs today?
The RSI hovered below neutral in the second half of May and early June. It shows that the selling pressure has increased over the same period. Also, OBV was down — demand was down.
A neutral position…
Source: Coinglass
The long/short ratio of PEPE’s exchanges showed a small spread between longs and shorts. Sellers had light leverage at 50.19%, but long positions were close at 49.81%. As such, the futures market is neutral and prices can go in any direction from the press time level.
