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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- PEPE has a strong structural bearish bias on the 4-hour chart.
- A short-term range could be feasible for scalp traders.
At the time of writing, Pepe [PEPE] had disappeared from the top 100 cryptocurrencies based on market capitalization. It ranked 105th with a market capitalization of $260.9 million.
Read Pepe’s [PEPE] Price forecast 2023-24
Selling pressure on the meme coin was strong and technical analysis showed that the downward trend was unlikely to disappear any time soon. The currency lacked momentum last week, but the likelihood of further PEPE losses in September was high.
The Fibonacci extension level to the south beckons PEPE onto the chart
Source: PEPE/USDT on TradingView
The price action since August 14 showed that PEPE has fallen lower on the charts. The market structure on the 4-hour chart turned bearish on August 15. During that time, the meme coin experienced a sharp decline.
This southward move was used to chart a series of Fibonacci retracement and extension levels (yellow). They revealed that the 23.6% and 50% expansion levels were at $0.00000062 and $0.00000044. These support levels were 6.7% and 33.7% lower on the chart than the price of PEPE at the time of writing.
The market structure has remained bearish over the past month and the RSI agreed with this finding. Since August 15, the index has not risen above the neutral 50, which reinforces the idea of a downward trend. The OBV has also moved steadily south to highlight the lack of bullish beliefs in the market.
Market sentiment in the lower time frame remained bearish
Source: Coinalyse
Coinalyze’s 1-hour chart highlighted the short-term range that PEPE has been trading in over the past week. The range stretched from $0.0000007 to $0.00000066. Scalp traders can trade within this range and make profits.
How much is 1, 10 or 100 PEPE worth today?
Open Interest has moved higher since September 13, even though PEPE lacked a solid trend. This indicated early bull bidding, but it was unclear whether these portended a rebound in prices. Traders can wait for a recovery to the $0.00000074-$0.00000078 region to assess whether to enter short positions.
