• PEPE (PEPE) traders experienced a strong upside move on 6 June, but the hike stalled at key trendline resistance.
• The downtrend momentum and bearish bias persists, making it difficult for bulls to gain an edge.
• Shorting at the trendline resistance ($0.00000120) could offer a good risk ratio, with potential targets being mid-range or range low.
This article analyzes the recent price action of Pepe [PEPE], which recently experienced an impressive recovery on 6 June, but failed to establish a bullish bias as it encountered resistance from its trendline. It is possible that this trend could continue and offer sellers more edge, meaning shorting at the trendline resistance ($0.00000120) might be profitable.
Since early May, PEPE’s overall price action has been in a descending channel (white). This channel’s upper range coincides with a key trendline resistance (orange), which has been preventing further gains since early May. If this trend continues, then PEPE could see another negative price reaction, leading to further drops towards the mid-range of $0.00000102 or range low of $0.00000086 – possibly creating a new all-time low (ATL).
The support zone (cyan) is a bullish order block (OB) formed on the 12-hour chart on 12 May and was temporarily breached after the Binance lawsuit; however it is unknown if it will hold up if there are further drops in price action. Meanwhile, both RSI and OBV have dropped below certain levels reinforcing the dip in buying pressure and demand for PEPE .
CVD Spot Fluctuation
The CVD spot has risen sharply from 6 June due to BTC reclaiming $27k; however it remains uncertain how this will affect PEPEs future performance as previous trends suggest that any gains made may not sustain themselves for long periods of time.
Overall, while PEPEs recent recovery was impressive, its downtrend momentum and bearish bias persists; potentially offering sellers more edge when shorting at its current level ($0.00000120). However whether or not these trends will persist remains uncertain as any changes in CVD spot could cause drastic changes in prices..