• PEPE’s impressive recovery on 6 June didn’t lead to a bullish bias and could offer sellers more edge.
• A key roadblock is the trendline resistance, which has been holding since 10 May.
• CVD spot fluctuated and could favor sellers, with shorting at the trendline resistance ($0.00000120) offering a good risk ratio.
PEPE’s Downtrend Persists
PEPE traders were ecstatic after a strong upside move on 6 June, however this did not lead to a bullish bias and instead trendline resistance emerged as an obstacle for bulls. 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 this trendline resistance (orange). Shorting at the trendline resistance ($0.00000120) could offer a good risk ratio, targeting mid-range or range low of $0.00000086 or even form an all-time low (ATL).
CVD Spot Fluctuates
The CVD spot, which tracks buying and selling volumes, rose sharply from 6 June as BTC reclaimed $27k and could favor sellers in terms of price action if it continues to fluctuate in value. Meanwhile, the RSI was below the 50-mark as OBV edged lower, reinforcing a dip in buying pressure and demand for PEPE.
Bulls Must Break Resistance
A close above $0.0000135 will invalidate the bearish thesis but bulls will only gain strength if they push beyond the 23.6% ($0.00000153) Fib level plotted between a lower high on 7 May and lower low on 12 May. Support zone (cyan) is also present as an OB formed on 12-hour chart on 12 May that was breached temporarily after Binance lawsuit but it remains to be seen if it will hold up against further downward pressure from bears.
The downtrend momentum of PEPE persists despite its impressive recovery on 6 June offering more edge to sellers than buyers at this point in time due to key roadblocks such as trend line resistance and support zone (OB). Shorting at the trend line resistance ($0