The market structure of Pepe is bearish and may retest recent lows. The enthusiasm in the futures market indicates that once the recovery begins, it may be rapid.
Pepe is trading short-term and experiencing selling pressure from the highs. One of the latest developments in the meme coin is the deposit of PEPE tokens worth $7.8 million into the Binance exchange, indicating a potential surge in selling pressure.
Another report from AMBCrypto suggests a bearish momentum, with holders potentially selling at a loss even if the price rebounds, to achieve breakeven. This scenario has occurred.
A 20% rebound earlier this weekend has seen a reversal of the reversal that began in April and May.
Two sets of Fibonacci retracement levels were drawn based on the moves in April and May. In the small fluctuations in the second half of May, the 78.6% retracement level (light yellow) was defended as support, but the 50% retracement point at $0.000013 became resistance and rejected the bulls.
The key levels marked in white captured the larger moves. These levels indicate that $0.0000089 is the 61.8% retracement level, highlighted as a bullish order block, suggesting a potential bounce from this area.
Failure to do so could mean that the long-term bearish trend may still not be established. The 78.6% level further south, at $0.0000068, is expected to reverse the deep correction. However, this would indicate bearish dominance in the short term.
Some positivity is shown in the daily indicators after a 20% price rebound earlier this week. The RSI is at 50, and the bulls will seek to reverse the neutral level to support the establishment of an upward trend.
Similarly, the CMF is at +0.08, indicating significant capital inflows. This trend needs to continue for the bullish sentiment to begin a recovery.
The open interest highlights the fluctuation in market sentiment. Despite the downward trend in the price of PEPE since late May, futures market speculators are not afraid to go long when PEPE shows a short-term bull market. On the 25th, the OI price rebounded 15%, soaring from $4 billion to $5.2 billion.
In the past 36 hours, the OI has dropped to $4.84 billion, indicating a decline in bullish sentiment, but this week has shown that political public figures are eagerly awaiting a trend change.
If Bitcoin (BTC) starts to recover, Pepe may be one of the best performing altcoins to watch.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other type of advice, and is solely the opinion of the author.