Pepe (PEPE), the popular memecoin, continues to navigate a challenging market, exhibiting a strong bearish trend that appears resistant to broader cryptocurrency upticks. Despite a recent modest bounce in Bitcoin, PEPE's outlook remains firmly negative, driven by a confluence of declining investor interest and unfavorable technical indicators.
Persistent Downward Pressure
The memecoin has seen a significant downturn, shedding 2% in the last 24 hours and a substantial 21% from its December high. This sustained price depreciation is mirrored by a dwindling Open Interest, which has decreased from $121.5 million to $114.5 million in recent days. Such a decline in open interest, coupled with stagnant price action, strongly signals a pervasive bearish sentiment within the PEPE market, indicating a notable absence of bullish conviction even as Bitcoin showed signs of recovery.
Technical Indicators Confirm Bearish Outlook
Technical analysis across various timeframes further solidifies PEPE's bearish trajectory. A clear bearish structure break was observed last week, originating from a key supply zone, suggesting that any retest of this area is likely to face strong rejection due to overwhelming selling pressure. Momentum indicators, such as the Relative Strength Index (RSI), consistently favor bears, with readings well below neutral. Furthermore, the Accumulation/Distribution (A/D) line has been in a steady decline since early November, highlighting persistent and aggressive selling pressure that has shown no signs of abating, even on shorter timeframes. The collective weight of these technical signals indicates a deeply entrenched bearish trend.
