Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- PEPE’s rally stalled at a critical resistance level.
- Spot CVD fell along with the price, indicating declining demand.
While the overall crypto market experienced a significant rally this weekend, Pepe [PEPE] stagnated at a critical resistance level. The 81% rally that took the meme coin from $0.00000090 to $0.00000162 met stiff bearish resistance as it went to press, halting bullish progress.
Realistic or not, here is PEPE’s market cap in BTC terms
At the time of writing, the price was trading at $0.00000155, just below the critical resistance of $0.00000162. If buyers fail to reverse this level, it could spell the end of the bullish rally.
Has PEPE’s trading volume decline brought the bulls to a halt?
Source: PEPE/USDT on trade view
Daily trading volume for PEPE fell 36.4% in the past 24 hours, as per CoinMarketCap. This hinted that market interest in PEPE could wane, reducing liquidity for significant price movements.
This can be attributed to the fact that the meme coin encountered significant resistance at $0.00000162 and buyers took profits after PEPE’s 81% gain over the past five days.
Despite regaining support from $0.00000115, bulls failed to close above resistance at $0.00000162. This gave sellers a chance to reverse recent gains.
A four-hour candle that fell close below the resistance level on June 24 led to sideways movement and indicators on the chart did not look good for PEPE.
The RSI steadily dropped from the overbought zone and hovered just above the neutral 50, at the time of writing. This indicated declining demand for the meme coin. The MACD posted a bearish crossover on June 24 with several red bars below the zero mark. Similarly, the CMF dipped below zero, signaling capital outflows.
In the near term, bears could target a price reversal towards the $0.00000115 level. On the other hand, bulls will hope to ride the bearish wave before initiating another $0.00000205 bullish attack.
How much are 1,10,100 PEPEs worth today?
Declining CVD highlighted declining demand behind PEPE
Source: Coinalyse
Open Interest fell nearly $10 million over the past two days. During this time, the CVD comes out on the spot Coin analysis also highlighted declining demand. A strong downtrend reinforced the idea that PEPE could fall back in the near term.
In general, traders should approach the price trend sideways while waiting for a clear trading opportunity above or below the critical resistance level of $0.00000162.