- PEPE and WIF recorded bearish sentiment over the past day
- Their market structure was firmly bullish
Pepe [PEPE] reached a new local high at $0.0000108, just like dogwifhat [WIF] which reached the $3.56 mark. However, the higher time frames showed that the trend remained bullish.
Yet with Bitcoin [BTC] with a decline of 7% from $73.7k to $68.4k at the time of writing, there was some reason to fear a market correction. This is what the technical analysis of the meme coin revealed.
The momentum in the lower time frame is bullish for both coins
Source: PEPE/USDT on TradingView
PEPE’s RSI on the 4-hour chart remained above the neutral 50 level throughout March, showing that momentum remained in the bulls’ favor. The market structure was also bullish.
The Fibonacci retracement levels showed that a move towards the 61.8%-78.6% area was possible. The OBV has been flat over the past week, indicating a lack of buying volume. Therefore, neither side had control over the market in recent days.
If PEPE starts to fall below the $0.0000079 support zone, buyers may look to re-enter the aforementioned demand zone based on the Fibonacci retracement levels.
Source: WIF/USDT on TradingView
The chart of WIF showed that the memecoin is on a bullish trajectory. Trading volume has been high in recent days and OBV has skyrocketed. This indicated that demand far exceeded selling pressure.
The RSI fell below the overbought area. Momentum has waned, but was still strongly bullish. The Fibonacci levels plotted were preliminary as the move upwards has not yet been completed.
The psychological support zone at $3 has held so far, but a decline below this level could see the $2.17-$2.46 zone tested again. This would likely create a bullish reaction.
The speculative bullish belief for WIF held, but not for PEPE
Combining the price action with the Open Interest charts of the meme coins provides insight into what the speculators are feeling. While WIF was bullish, PEPE traders were not so bullish.
Source: Mint glass
Since March 14, the OI has started to decline. During that time, the price of PEPE fell by more than 10%. The price drop and OI highlighted a shift in short-term beliefs.
Source: Mint glass
On the other hand, the WIF OI did not fall as sharply. In addition, prices have also increased, but OI has not kept pace. This again painted a weakly bearish outlook in the near term.
Realistic or not, here is the market cap of PEPE in terms of BTC
Along with Bitcoin’s price drop, the possibility of a continued slump should prices for both meme coins be present. Still, their higher time frame charts were strongly bullish.
Therefore, buyers can look to add more of these tokens as they revisit the key support levels.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.