Are the days of Pepe coin’s losses far from over? This is a question many investors are asking as they observe the current market trends. Based on recent analyses, the market structure and momentum have consistently leaned towards a bearish outlook. A reevaluation of significant support levels could indicate a potential price bounce. However, the overall trend for Pepe, the third largest meme coin as per CoinMarketCap, has been majorly bearish over the past month, hinting at possible further losses.
Pepe’s Price Trend and Projections
The on-chain metrics, coupled with technical indicators, suggest that the bears are in control of Pepe’s market. Although Bitcoin [BTC] has experienced a slight bounce recently, its trend has largely been bearish, which has had a ripple effect on other cryptocurrencies, including Pepe. As of now, it seems unlikely for Pepe to recover its losses.
Pepe’s trading within a specific range (yellow) in July showed signs of a bearish continuation. On 27th July, the price retested the range lows as resistance, having fallen below it a few days earlier. This retest was followed by steady losses for Pepe. A sequence of lower highs and lower lows since 24th July pointed to an ongoing downtrend.
Indicators of Bearish Momentum
The Relative Strength Index (RSI) has consistently remained below the neutral 50 mark since mid-July, reinforcing the strong bearish outlook. Similarly, the On-Balance Volume (OBV) has been on a gradual decline, indicating increasing selling pressure. Since losing its range, Pepe’s value has depreciated by 19%, and another 30% loss is anticipated.
The next support level is set at the $0.000001 mark. However, a price drop below the $0.00000103 mark would suggest a weakness among buyers, potentially triggering another price drop towards the $0.00000082 level, where Pepe reversed its downtrend in June.
Shift in Investor Sentiment
Open Interest has been on a decline since 14th July, mirroring the downtrend in price. This reflects discouraged longs and a bearish sentiment. Speculators appear reluctant to bid on the memecoin, but they aren’t actively shorting Pepe either. If Pepe can establish a bullish structure break, it could reignite buyers’ interest. A price movement back above the $0.00000145 level would be necessary to flip the higher timeframe outlook bullishly.
For those keen on staying updated with these trends, the cryptoview.io application offers a comprehensive platform to monitor the market movements of Pepe and other cryptocurrencies.
