- PEPE’s social and transaction volume in earnings metrics was a warning to the short-term bulls.
- The support levels in the south could provide a good risk-reward buying opportunity.
Pepe [PEPE] traded within a short-term range of $0.0000131, the May 30 low, to $0.0000154. At the time of writing, PEPE bulls were defending the mid-range support level at $0.0000143.
Their valiant efforts could be in vain. The technical indicators and order book showed that PEPE prices could expect a decline of 5% to 6%.
Here’s what traders can watch for in the coming days. With the weekend approaching, two days of lower volatility and volume are possible.
A large group of limit buy orders could soon be hunted
Like liquidation levels, limit orders can also provide some hints about future price action. In this case, MobChart’s PEPE data showed limit purchase orders worth $1.38 million at the $0.0000141 level and another $1.31 million at $0.000014.
The former order opened recently, suggesting prices could move higher without reaching these levels. There were another $995,000 worth of buy orders at $0.0000135, establishing these two levels of support.
Scalp traders may want to examine market conditions on the lower time frame for bullish triggers before purchasing a retest of any of these levels.
Enthusiasm for PEPE has waned somewhat since the end of May
The ratio between daily transaction volume in the chain and profit/loss experienced many peaks in May. These fell slightly in the first week of June, as the memecoin became stuck within certain ranges.
This indicated a decline in bullishness and could be a sign of bearishness and caution.
Social volume and dominance also trended higher in May as prices rose higher, but volume has trended lower over the past ten days.
The decline in social media engagement underlined the decline in PEPE hype.
Source: PEPE/USDT on TradingView
PEPE’s price action showed a sharp short-term decline below the mid-range support level outlined earlier.
The Directional Movement Index noted the lack of a strong trend on the 4-hour chart, with the ADX (yellow) below 20.
Realistic or not, here is the market cap of PEPE in terms of BTC
However, the CMF rose higher, indicating large capital inflows into the market. This buying pressure could be persistent enough to beat the bears backwards and force PEPE to bounce to the highest levels in the range.
Swing traders and investors can wait until the area around $0.0000135-$0.000013 is tested before buying, focusing on the high range.