Pepe has slid 2.66% in value in the past 24 hours and was down 14.71% over the past week.
It has followed the memecoin sector’s general bearish trend, although it has been one of the weakest-performing assets among popular memes over the past week.
The bearish bias has not faltered over the past 24 hours of trading. There could be hope of a Bitcoin [BTC] short squeeze toward $70k later this week, which might alleviate the short-term selling pressure on PEPE.
PEPE bears fail to breach a local support
Source: PEPE/USDT on TradingView
On the 1-day chart, the swing structure of Pepe [PEPE] was bearish. This was confirmed by the daily session close below the previous swing low (orange). Since then, the local support at $0.00000342 saw a price bounce.
The same level was being tested once more. It appeared like a good place for the price to bounce, but expecting a bullish reaction here could invite trouble. The OBV on the daily chart was firmly trending lower, reflecting very little power from the bulls.
The RSI also signaled that downward momentum was prevalent. Hence, rather than buying the support’s retest, traders can wait for it to be flipped to resistance before entering.
A potential short-selling opportunity ahead
Source: PEPE/USDT on TradingView
The 1-day structure was bearish, and so was the 1-hour timeframe’s price action. The RSI has strayed back to neutral 50 levels. Meanwhile, the hourly OBV was in its downtrend and unable to make new highs in recent days, reinforcing the idea of seller dominance.
The 50%-78.6% retracement pocket from $0.00000358-$0.0000037 would likely offer an ideal short-term trading opportunity. The 23.6% extension level to the south is the take-profit target, while an hourly session close above the $0.00000379 local high will invalidate the idea.
Final Summary
- PEPE was one of the weakest performers among the popular memecoins over the past week.
- It was testing a key local support at the time of writing, but traders should not be looking to buy during this seller-dominated price trend.
