- PEPE has a bearish market structure.
- A break below the nearby support level could lead to an 18%-40% decline in the price over the next few weeks.
Pepe (PEPE) fell 35% from January 11th to 24th. The bearish market structure has been maintained since January 3rd. At press time, PEPE bulls were trading in a support zone they have been defending since November 2023.
A fall below this area would allow Meme Coin to recoup all the gains it made in the second half of October 2023. On-chain indicators suggest that holders are preparing to sell their tokens, which could cause the price to fall.
Momentum was weak last month
On the 1-day chart, PEPE’s RSI fell below the neutral line of 50 on January 2nd. Apart from a brief rise after January 11, it has remained below that level since.
OBV has also been on the rise for the past three months, although it has been declining over the past two weeks.
Source: PEPE/USDT on TradingView
The market structure on the 1-day chart was bearish. A bullish reversal of the structure would require a move above $0.0000012. In the demand zone (turquoise box), PEPE rallied quickly in November.
Accordingly, buyers are expected to be eager to re-enter the market. However, if the daily session closes below the $0.000001 support, it would be an early sign of imminent losses.
The aggravated emotions sparked a brief spark, but to no avail.
AMBCrypto analyzed Santiment’s data to better understand how PEPE is doing. The Active Addresses indicator continued to trend downward in January.
Source: Santiment
Last month, exchange supply also surged. Together they demonstrated the lack of demand for PEPE and the potential for another wave of sales.
Realistic or not, PEPE’s market cap in BTC terms is:
Despite positive social sentiment over the past few days, it was not enough to stem the decline.
The MVRV ratio pointed out that holders may have suffered losses and the token may be undervalued. But that alone may not be enough to start a rally.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.