- PEPE saw steady demand in the spot markets during its rally.
- Traders might view the H4 swing levels as range extremes.
Pepe [PEPE] saw a sharp pullback on March 5, along with the rest of the crypto market. Bitcoin [BTC] reached its USD ATH at $69,000 that day and fell to a low of $59,000 just a few hours later.
AMBCrypto reported that on March 3, a whale withdrew $6.3 million worth of PEPE from a centralized exchange, Binance. Besides the technical indicators, this was a bullish sign for the memecoin.
PEPE and range formation on the lower time frames
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.
Examination of the 4-hour chart showed that the swing low at $0.00000495 is crucial for the bulls’ defense. A PEPE decline below this level would shift the market structure bearish within a four-hour time frame.
Therefore, this swing low and the local high at $0.0000087 can be considered the extremes of a short-term range and traded accordingly.
The RSI on the H12 chart started to move lower as momentum waned, but still showed a reading of 70, indicating an overbought situation.
It should be noted that this does not mean that another downturn is imminent. The OBV also moved lower in recent days as selling pressure increased, but only dented gains over the past ten days.
Assessing sentiment on the futures market
Source: Coinalyse
The Open Interest behind the meme coin has been on a downward trend since March 4. The stock has risen higher in the last twelve hours, from $60.15 million to $78 million at the time of writing. This suggested that bullish conviction was high again.
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Spot CVD has also moved higher during the PEPE rally. This metric has not slowed, showing that demand remained high. Therefore, more profits 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 advice and is solely the opinion of the author.