PEPE price prediction – Here’s why a ‘disbelief rally’ could be on the cards next

Pepe [$PEPE] has shed 4.1% of its value over the last 24 hours, in addition to a 10% decrease in Open Interest. Its daily trading volume also fell by nearly 20%, according to CoinMarketCap data.

Source: Coinalyze

The drop in Open Interest alongside falling prices hinted at weak market sentiment. Speculators seemed to be happy to exit the market and did not trust in a bounce.

This might explain why, at the time of writing, the dip to the $0.0000037-local support attracted little capital inflows in the Futures market.

Source: CryptoQuant

CryptoQuant data revealed that the 90-day Futures Taker CVD was seller-dominated. Over the past month, the CVD has been slowly rising, but it remained within a taker-sell-dominated regime.

Together, these data points indicated that traders and investors should be looking to sell $PEPE, instead of buying. On the other hand, does a pessimistic market open the way for a short squeeze?

Examining $PEPE price trends

Source: $PEPE/USDT on TradingView

The swing structure has been bearish following the crash in February. This drop reached a low of $0.0000031 on 06 February, and this low has not been breached since then.

This was a common point $PEPE had with other memecoins such as Dogecoin [DOGE] and Shiba Inu [SHIB]. $PEPE has struggled to breach the $0.0000040 local resistance zone and faced rejection from this supply zone as recently as a week ago.

Meanwhile, the momentum was only faintly bullish at press time. The CMF remained below -0.05 for the most part in recent weeks to signal capital outflows.

Source: CoinGlass

Traders need to rush to sell or go short on $PEPE contracts. There was a cluster of short liquidations around $0.00000416-$0.00000450. This region is the next candidate for a liquidity sweep before a bearish trend is initiated.

Another way to look at the market is to visualize a range between $0.0000032-$0.0000040. A breakout past the highs would be suspicious, unless it is accompanied by sustained buying pressure and high capital inflows.

Until this happens, traders can wait for a bounce towards $0.0000045 to sell.

Final Summary

$PEPE saw an exodus of speculators recently as market sentiment, especially around memecoins, continued to weaken.

Pessimism among participants could give rise to a “disbelief rally” towards the $0.0000045 level, but not much higher.