Pepe Coin Price Prediction: Open Interest Slides 44%, Crash Imminent?
Highlights
- The new higher low formation is under the influence of a downsloping trend as a market of sell-the-bounces.
- The formation of a flag pattern and Pepe price holding above 100-and-200-day EMA indicate the broader trend remains bullish.
- The 24-hour trading volume in the Pepe coin is $767.5 Billion, indicating a 6.7% gain.
Pepe Coin price prediction: The first three weeks of June have been notably bearish for the crypto market following the lead of Bitcoin correction. With the BTC price falling below $64,000 on Friday, several altcoins especially the meme coin sector witnessed extended correction. However, defying the selling pressure and its declining volume, the Frog-theme meme coin PEPE is up 5% raising the question of a bull trap or relief rally before the next dump.
Also Read: Pepe Coin Price Prediction: Bullseye On $0.00002 As PEPE Leads Meme Coin Recovery
Pepe Coin Price Prediction: Open Interest Drops Signaling Investor Caution
Throughout the week, the pepe coin witnessed low volatility trying to sustain above the $0.00001 psychological level. Despite the supply pressure from the broader market, the memecoin price showcased notable resilience evidenced by the long-tail rejection on Tuesday.
However, the near-term trend in Pepe is still bearish as the development of new higher and lower lows continues. The downward trajectory is led by a two-downsloping trendline indicating the formation of a flag pattern.
The chart pattern is known to lead to a temporary downtrend and replenish the exhausted bullish momentum for the next leap.
From the recent peak of $0.00001725, the coin price dropped 34% to currently trade at $0.000011, while the market cap plunged to $4.72 Billion. Despite an intraday jump of 5%, the PEPE price witnessed a 6.7% drop in trading volume projecting a lack of interest from trades to enter a long position.
Similarly, the open interest in Pepe coin has declined significantly, with Coinglass reporting a drop from $189.51 million in late May to $107 million now. This represents a decrease of approximately 43.5%. Note that this substantial reduction in open interest suggests a waning of trader commitment or liquidity in the market for Pepe, potentially indicating decreased confidence or interest from investors.
Therefore, the two falling trendlines of the flag pattern are intact, the Frog meme coin may prolong the downward trajectory and may risk losing $0.00001 support.
On a contrary note, a breakout above the overhead trendline will signal a change in market sentiment and provide buyers with suitable support to lead a higher rally. The post-breakout rally could push the asset back to the $0.00001725 high.
Technical Indicator
- EMAs: The 20-day Exponential Moving Average offers dynamic resistance to the bullish bounce in PEPE price.
- MACD: A bearish crossover between the MACD (blue) and signal (orange) indicates the sellers are the current dominant force in this coin.
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