PEPE Faces Bearish Pressure as Momentum and Price Trail

PEPE faces bearish momentum on lower timeframes, with Fibonacci levels guiding traders. Despite a brief period of buyer interest, price action signals further declines. Bitcoin's influence plays a role, leaving PEPE bulls struggling. Short-term range formation and bearish sentiment among speculators add to the bearish bias.

PEPE Faces Bearish Short-Term Bias Amid Diminishing Momentum and Price Action

Introduction:

PEPE, a cryptocurrency notable for its association with the popular online meme, has exhibited a pronounced bearish bias in the short term, as evidenced by its momentum and price action indicators. Traders observing the recent volatility experienced by PEPE should note that this volatility has subsided over the past 24 hours, leading to a divergence between momentum and volume indicators.

Technical Analysis: Bearish Market Structure and Downtrend

The price action chart suggests a continuation of the downtrend, with the 4-hour and 6-hour timeframes displaying a bearish market structure. Despite the long-term uptrend, the current retracement aligns with the internal structure of the upward momentum. Traders can anticipate further losses in the near term.

The Relative Strength Index (RSI) indicator remains below the neutral 50 level, indicating a stronger downward momentum. However, the Chaikin Money Flow (CMF) indicator stands at +0.16, suggesting a significant demand for the cryptocurrency.

Within the current range, PEPE remains confined between the levels of $0.00000481 and $0.00000581. The 78.6% Fibonacci retracement level and a demand zone from early March, where prices consolidated before rallying six weeks ago, serve as notable areas of interest.

Market Sentiment: Absence of Speculators Amid Bearish Sentiment

Recent price fluctuations have resulted in liquidations of both long and short positions in futures markets. The sharp drop on April 13th, followed by a rapid bounce, has instilled caution among speculators.

The Funding Rate, while slightly positive, does not imply a favorable outlook for long positions. Open Interest has remained stagnant since the 14th, and aggregate liquidations continue to be substantial over the past 24 hours. These indicators suggest bearish sentiment and apprehension in the market.

Conclusion: Dependence on Bitcoin and Speculator Activity

PEPE's short-term trajectory depends heavily on the performance of Bitcoin, the leading cryptocurrency in the market. If Bitcoin and PEPE fail to establish a clear uptrend, speculators will likely remain on the sidelines. Traders should exercise caution and monitor the price action and technical indicators closely for further developments.

Disclaimer:

The information provided in this article should not be construed as financial advice. Cryptocurrency investments are subject to significant volatility and risk, and investors should conduct their own thorough research before making any investment decisions.