- PEPE holders could choose to benefit from a price increase in the coming days
- The price forecast remains bearish and a retest of a key support zone is expected
Pepe [PEPE] Bulls thought they were starting to reverse the downtrend last week after prices consolidated above previous local resistance, which is now providing support. However, in the last 24 hours this started to change.
The increase in selling pressure of the meme coin was accompanied by a Bitcoin [BTC] fell below the $64.8k mark that started on June 21st.
Sentiment in the crypto world was bearish and the PEPE price forecast showed traders expecting a retest of this support zone.
The bullish order block: can it save PEPE?
Source: PEPE/USDT on TradingView
PEPE will likely see another double-digit price drop.
The PEPE price forecast is that a move towards the $0.0000093 support zone (cyan box), a bullish mid-May order block, is likely to materialize in the coming days.
The RSI on the daily chart was below the neutral 50 in June, linked to the bearish market structure on a lower time frame when the meme coin fell below the support at $0.00001314.
The OBV could barely maintain a level of local support. Trading volume has been low in recent weeks, indicating that the recent downtrend had no substance.
A market-wide shift in sentiment could mean a quick recovery for PEPE, both based on trading volume and in/out of the money chart.
The selling pressure could fade quickly
Data from IntoTheBlock showed that 77.58% of PEPE holders were in the money, meaning they were still making profits despite the recent downtrend.
A large portion of the profit-making PEPE tokens were purchased in the $0.000002-$0.000003 zone, the area where the token started its rapid uptrend in late February.
Read Pepe’s [PEPE] Price forecast 2024-25
Around the price, a higher percentage of tokens were out-of-the-money, meaning a price increase could trigger selling pressure from holders looking to exit at break-even levels. Therefore, a price drop is expected in the short term.
In time, the uptrend could continue after a retest of the bullish order block at $0.0000093.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
