Pepe continued to trend downward and shed 2% in the past 24 hours. It was down nearly 21% from December’s high.
Meanwhile, the recent 5% Bitcoin bounce from Friday’s $85.5k to Monday’s $89.7k has done nothing to help the popular memecoin’s bulls.
Coinalyze data showed that, since the 20th of December, Open Interest slowly dwindled, from $121.5 million to $114.5 million. Alongside the short-term sideways price action, it signaled bearish sentiment within the PEPE market and a total lack of bullish belief.
A report earlier this month highlighted how the long-term PEPE trend was bearish. This finding has not been disproved yet. Here’s what Pepe [PEPE] traders can watch out for in the coming days.
Establishing the bearish strength behind the memecoin
The 1-day chart showed that another bearish structure break occurred last week, on Wednesday, the 17th of December. This break originated from the $0.000044-$0.000050 supply zone (red box).
Any retest of the supply zone would likely result in rejection. This was because the momentum favored the bears, as the RSI’s reading of 40 showed.
The A/D has not halted its decline since the beginning of November, another sign of steady selling pressure.
The 1-hour chart showed a bearish structure in place, and the RSI leaned bearishly as well. Most worrying was the A/D’s sustained slump over the past week, highlighting that selling pressure had not let up.
Exploring the bullish scenario
This is the less likely scenario in the coming days.
Across multiple timeframes, the momentum and volume were bearish, and a bullish breakout appeared unlikely. The 5% Bitcoin [BTC] bounce had no bullish impact on PEPE either.
Traders’ call to action- Remain bearish
As the 1-hour chart showed, a bounce to $0.0000420 would offer a selling opportunity. In case this area is flipped to support, the Fibonacci retracement levels would be the next retracement levels to watch.
Plotted based on the most recent swing move, they were at $0.0000452 and $0.0000476.
Final Thoughts
- The Pepe price action remained strongly bearish despite the Bitcoin uptick in recent days.
- There were three key short-term resistance levels to watch that PEPE would likely see a bearish reaction from in the coming days.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
