Analyzing PEPE's Decline After 80% Rise: Key Levels to Monitor
PEPE's Recent Performance
Pepe (PEPE) recorded a 0.66% decline over the last 24 hours, following a period of volatility that saw prices drop 2.33% within an hour, reaching $0.00000588. Despite an 80.15% rally from January 1st to 4th, PEPE has retraced by 18.32% since.
The memecoin sector, as reported by AMBCrypto, exhibited strong bullish momentum at the start of the year, drawing capital inflows and capturing investor attention. However, this momentum tapered after January 5th.
Over the past week, PEPE has decreased by 15.27%, while Dogecoin (DOGE) fell 7.25%, and Bitcoin (BTC) remained stable near the $90k mark, slightly down by 1.02%.
Challenges for PEPE Bulls
The $0.0000062-$0.0000072 range, a resistance zone identified in late October/early November, was breached on June 4th. However, buyers couldn't maintain their gains, causing PEPE to fall back below this critical support. The $0.0000062 level now acts as resistance, requiring significant bullish effort for a reversal.
On the 1-day chart, the market structure remains bullish with strong buying pressure indicated by the A/D indicator, and the Awesome Oscillator showing continued bullish momentum.
Potential Scenarios
A drop below the $0.0000044-$0.0000050 demand zone seems unlikely due to strong capital inflows in early January. Meanwhile, Bitcoin's rise above $91k, challenging the $92.5k resistance, could positively influence memecoins. A breakout beyond $92.5k and $94.5k would support the sector.
Traders' Strategy: Await Confirmation
While the 1-day structure is bullish, the 1-hour chart remains bearish, with the $0.0000060 zone acting as local supply. Traders might consider buying on a retracement to $0.0000044-$0.0000050 or a breakout above $0.0000072. Patience is advised for those trading lower timeframes.
Final Thoughts
- The memecoin sector has lost some bullish momentum, with PEPE down 15%.
- Bulls may consider buying after a deeper retracement, targeting a rise to $0.0000080-$0.0000095.
Disclaimer: This article does not offer financial, investment, or trading advice and reflects the author's perspective.