- PEPE saw steady demand in the spot markets throughout its rally.
- Traders could see the H4 swing levels as range extremes.
Pepe [PEPE] saw a sharp pullback on the 5th of March alongside the rest of the crypto market. Bitcoin [BTC] reached its ATH in USD at $69k on that day and dropped to a low of $59k just a few hours later.
AMBCrypto reported that a whale withdrew $6.3 million worth of PEPE from a centralized exchange, Binance, on the 3rd of March. Alongside the technical indicators, this was a bullish sign for the memecoin.
PEPE and the range-formation on the lower timeframes
Source: PEPE/USDT on TradingView
The 12-hour chart above showed that the market structure remained strongly bullish. The swing low for the H12 timeframe was at $0.00000263, meaning the structure would remain bullish until prices fell below this level.
An examination of the 4-hour chart showed that the swing low at $0.00000495 is crucial for the bulls to defend. A PEPE drop below this mark would shift the market structure bearishly on the 4-hour timeframe.
Therefore, this swing low and the local high at $0.0000087 could be considered as the extremes of a short-term range and traded accordingly.
The RSI on the H12 chart began to fall lower as momentum slowed down, but it still showed a reading of 70 to signal overbought conditions.
It must be noted that this does not mean another pullback is imminent. The OBV also dipped lower over the past few days as selling pressure rose, but only made a dent on the gains made over the past ten days.
Assessing sentiment in the futures market
The Open Interest behind the meme coin has trended downward since the 4th of March. It has shot higher over the past 12 hours, rising from $60.15 million to $78 million at press time. This suggested that bullish conviction was hefty once more.
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The spot CVD has also trended higher throughout PEPE’s rally. This metric has not slowed down, which showed that demand remained high. Therefore, more gains are expected.
To the north, the $0.000011 level was the next bullish target.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.