In the last 24 hours, the PEPE price has swayed between an intra-day high and low of $0.000009168 and $0.000008432, respectively with bullish momentum fading. Currently, PEPE is selling at $0.000008587087 but has dropped 5.12% over the past 24 hours. The action has also come as the coin continues being capped below a critical resistance area, likely to have kept many traders cautious as the latest gains continue to look unsustainable.
Recent price action came hand in hand with several bearish technical indicators implying that PEPE is likely to continue under downward pressure. A critical factor to this bearish forecast is the inability to scale past the resistance at the 200-day Exponential Moving Average, a price level of $0.0000095. This level has been strong resistance, with PEPE's price rejected for several days.
Further affirming the bearish case are the falling open interest for PEPE. According to the latest available reports, the open interest has reduced to $110.45 million. Open interest reduction usually suggests market participants' withdrawal from trading and low confidence in a possible recovery in the near term. A decline in open interest with a fall in price portends decay in the sentiment of traders and investors.
This is further confirmed by on-chain data with the long-to-short ratio for PEPE slipping below 1 and currently at 0.885, showing that more traders are positioning for prices to fall and thereby validating the bearish view. Other technical indicators, such as the Relative Strength Index and Awesome Oscillator, agree with the above—not so far the RSI, which is just above its neutral level of 50, and AO, dropping under zero to show weakening momentum.
As a corollary to the decline in open interest, trading volume for PEPE has similarly shown indications of wavering. Current trading activity totals $624.868 million, making PEPE the 11th most traded token by volume in the market. With this ranking, the pullback from earlier highs continues to show that this is a market that grows wary, and a reduced number of traders are making trades at these prices.
The decline of trading volume and open interest confirms that there is a possible loss of interest in PEPE. This market sentiment change is important because in all possibility, if bearishness continues to dominate, further price drops will occur.
As PEPE remains slightly under its present price levels, these support and resistance levels may play an enormous role in keeping the trends coming into the future. The immediate resistance is the 200-day EMA around $0.0000095, a level that has proved to defend against price advances on several occasions.
If PEPE can close above $0.0000098, it may be expected to nullify the downside view and probably again test the resistance at $0.000010. However, the key level to watch on the downside is support around $0.0000077.
A failure by PEPE to hold above this level could, however, trigger more losses, possibly erasing gains posted over the past few sessions and exerting extra pressure on the meme coin.