Here’s what PEPE’s bulls will expect from its price action next week
08/24/2024 14:00
Pepe retained a bearish structure and has not broken above the key lower high at $0.000009, especially as demand for the memecoin remained...
- PEPE is likely to see a price bounce of close to 10% in the coming days
- Higher timeframe charts remained bearish though and there was no sign of a PEPE rally at press time
On 5 August, when Bitcoin [BTC] fell to $49k, Pepe [PEPE] revisited its 78.6% Fibonacci retracement level at $0.0000068. The memecoin has not been able to replicate the price action of other major altcoins.
Some of them have managed to regain the prices they were trading at before the bearish sentiment set in during the first week of August. However, neither have the rest of the popular memecoins performed well over the past two weeks.
Sentiment is slightly positive, despite lack of encouraging price action
The 3-day weighted sentiment was slightly positive over the past few days. This highlighted social media engagement was not pessimistic. During this time, the dormant circulation has also been relatively flat.
The rising mean coin age pointed to greater accumulation over the past week. If the dormant circulation remains quiet and the mean coin age can trend even higher, it might help PEPE’s recovery chances.
On the other hand, a similarly rising MCA in July was not enough to take the memecoin past the $0.000013 resistance zone. This level has held the buyers back since the first week of June.
PEPE is unlikely to recover its late July levels
Source: PEPE/USDT on TradingView
The daily market structure was still bearish. To change this around, the price has to close a daily trading session above $0.000009. The MACD signaled weakening bearish momentum, with the OBV beginning to climb slightly too.
The most encouraging fact was PEPE’s stubborn defense of the $0.00000678 level, a key Fibonacci retracement. The bulls were beaten but not wholly defeated yet.
The 7-day look-back period revealed that the $0.0000085-$0.0000094 zone had a high concentration of liquidation levels. Traders expect the downtrend to continue but these short positions would get liquidated if PEPE gains by another 8%.
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Hence, in the short term, traders can expect a price bounce to sweep this liquidity. After a few days, unless organic demand is reflected on indicators such as OBV, a sustained uptrend would be unlikely.