- PEPE saw relief above 61.8% and tried to recover.
- However, a strong recovery may be delayed as BTC fluctuations persist.
In the second half of the second quarter, crypto markets experienced a broader retracement, causing most altcoins to experience double-digit losses. Pepe mint [PEPE]one of the memecoins that saw a huge rally in May lost more than 30% of its value.
However, PEPE saw some relief after retesting a key demand zone and the 200-day EMA (Exponential Moving Average) near $0.000009.
The meme coin is up 4% in the last 24 hours, but was not yet bullish in the market structure at the time of writing.
PEPE Coin Price Prediction: Can Bulls Reclaim 50-EMA?
Source: PEPE/USDT, TradingView
Key technical indicators on the higher 12-hour timeframe charts showed increasing buying pressure.
Notably, the CMF (Chaikin Money Flow), which tracks money flows into the PEPE markets, climbed above average levels, showing that significant liquidity has been pumped into the memecoin.
Similarly, the RSI (Relative Strength Index) recovered from the lower range, indicating increasing buying pressure for the meme.
However, in June the indicator remained below the mid-range, indicating that demand was still subdued.
A further rally could be confirmed if PEPE were to turn bullish by moving above the trendline resistance (white) and the 50-EMA ($0.0000012).
So despite a relief at the gold ratio (50% Fib level), bulls could only make an impact if PEPE regained the 50-EMA.
Otherwise, a drop to 200 EMA could not be reversed in the near term Bitcoin [BTC] struggled to get above $66,000.
More headwinds for PEPE
Source: CryptoQuant
By the way, one more facts CryptoQuant’s point suggested that the dominance of memecoins in the bull run has weakened significantly in recent weeks.
If mindshare shifts away from memes elsewhere, it could add headwinds to PEPE’s strong recovery.
Source: Santiment
Furthermore, daily active addresses remained low despite a recent positive increase in weighted sentiment for PEPE. It meant that the positive sentiment may not have been enough to propel PEPE forward as user activity remained low.
However, the slow traction can change when Ethereum [ETH] ETFs are reportedly launching before July 4.