The market structure for Pepe looks bearish and may test recent lows again. The enthusiasm in the futures market suggests that a recovery, once initiated, could be swift.
Pepe is trading short-term and experiencing selling pressure from the highs. One of the latest developments for the meme coin is the deposit of PEPE tokens worth $7.8 million into the Binance exchange, indicating a potential increase in selling pressure.
Another report from AMBCrypto indicates a bearish outlook, suggesting that even if the price rebounds, holders may sell at a loss to balance their profits and losses. This scenario has unfolded.
A 20% rebound earlier this weekend has shown signs of a reversal.
Two sets of Fibonacci retracement levels have been plotted based on the impulse moves in April and May.
During the minor fluctuation in the latter half of May, the 78.6% retracement level (light yellow) was defended as support, but the 50% retracement point at $0.000013 acted as resistance and rejected the bulls.
The marked levels capture larger moves. These levels indicate that $0.0000089 is the 61.8% retracement level, highlighted as a bullish order block. Therefore, the price may rebound 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 deep corrections. However, this would indicate bearish dominance in the short term.
After a 20% rebound earlier this week, daily indicators show some positivity. The RSI is at 50, and bulls will seek to flip 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 political meme index to start recovering.
Open interest contracts highlight the fluctuation of 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 signs of a short-term bull market. On the 25th, the OI price rebounded by 15%, soaring from $4 billion to $5.2 billion.
In the past 36 hours, OI has dropped to $4.84 billion, indicating a decrease in bullish sentiment, but this week has shown that political meme optimism is eagerly awaiting a trend reversal.
If Bitcoin (BTC) starts to recover, Pepe may be one of the top-performing altcoins.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other type of advice, and is solely the opinion of the author.
