Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- Trendline resistance has become a key roadblock
- CVD spot fluctuated and could favor sellers
Pepe [PEPE] traders, especially bulls, were ecstatic after a strong upside move on 6 June. This was a day after the Binance lawsuit, and PEPE rallied over 15% on the daily performance.
However, the hike eased at key trendline resistance. The trendline has been a roadblock since 10 May and could persist unless Bitcoin [BTC] flips to a bullish bias on the higher timeframe.
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Will the bulls falter again at the roadblock?
Source: PEPE/USDT on TradingView
Since early May, PEPE’s overall price action chalked a descending channel (white), reinforcing the downtrend momentum and bearish bias on the lower timeframe. The upper range of the channel coincides with a trendline resistance (orange).
The price faced rejections at the range high/trendline resistance since early May – making it a key obstacle. PEPE could see another negative price reaction if the trend persists. Hence, the memecoin could drag lower to the mid-range of $0.00000102 or range low of $0.00000086.
A drop to the range low could make PEPE form a new all-time low (ATL). If that’s the case, shorting at the trendline resistance ($0.00000120) could offer a good risk ratio, targeting mid-range or range low.
A close above $0.0000135 will invalidate the bearish thesis. But bulls will only gain the upper hand if they push beyond the 23.6% ($0.00000153) Fib level. The Fib tool was plotted between a lower high on 7 May and a lower low on 12 May.
The support zone (cyan) is a bullish order block (OB) formed on the 12-hour chart on 12 May. It was breached temporarily after the Binance lawsuit, and remains to be seen if it will hold.
Meanwhile, the RSI was below the 50-mark as OBV edged lower, reinforcing a dip in buying pressure and demand for PEPE.
CVD spot fluctuated
Source: Coinalyze
How much are 1,10,100 PEPEs worth today?
The CVD spot, which tracks buying and selling volumes, rose sharply from 6 June as BTC reclaimed $27k, down from $25k. However, the PEPE’s buying pressure and volumes have wavered, as illustrated by fluctuations in CVD in the past two days.
