- PEPE and WIF famous some bearish sentiment over yesterday
- Their market construction was firmly bullish
Pepe [PEPE] reached a brand new native excessive at $0.0000108, as did dogwifhat [WIF] which touched the $3.56 mark. Nonetheless, the upper timeframes confirmed that the development remained bullish.
But, with Bitcoin [BTC] down 7% from $73.7k to $68.4k at press time, fears of a market correction had some grounds. Right here’s what technical evaluation of the meme coin revealed.
The decrease timeframe momentum is bullish for each cash
Supply: PEPE/USDT on TradingView
The RSI of PEPE on the 4-hour chart remained above the impartial 50 mark all through March. This confirmed that the momentum continued to favor the bulls. The market construction was additionally bullish.
The Fibonacci retracement ranges confirmed {that a} transfer to the 61.8%-78.6% area was doable. The OBV has remained flat over the previous week to point an absence of shopping for quantity. Therefore, neither facet had management over the market in current days.
If PEPE begins to drop beneath the $0.0000079 assist zone, consumers may look to re-enter the aforementioned demand zone based mostly on the Fibonacci retracement ranges.
Supply: WIF/USDT on TradingView
The chart of WIF confirmed that the memecoin has a bullish trajectory. The buying and selling quantity has been excessive over the previous couple of days and the OBV soared upward. This indicated that demand far outweighed the promoting stress.
The RSI was falling beneath the overbought territory. The momentum has slowed down however was nonetheless strongly bullish. The Fibonacci ranges plotted had been tentative, because the transfer upward has not but completed.
The $3 psychological assist zone has held agency up to now, however a drop beneath this degree may see the $2.17-$2.46 space retested. This may probably present a bullish response.
Speculative bullish conviction for WIF stood agency, however not PEPE
Combining the worth motion with the Open Curiosity charts of the meme cash offers insights into what the speculators really feel. Whereas WIF confirmed bullishness, PEPE merchants weren’t as optimistic.
Because the 14th of March, the OI has begun to say no. Throughout that point the worth of PEPE declined by greater than 10%. The drop in costs and OI highlighted a shift in short-term conviction.
Alternatively, the WIF OI didn’t drop as sharply. Alongside it, the costs have additionally trended larger, however OI has not saved tempo. As soon as once more, this outlined a weak bearish outlook within the close to time period.
Sensible or not, right here’s PEPE’s market cap in BTC’s phrases
Along with Bitcoin’s drop in costs, the potential of a continued droop if costs had been current for each meme cash. But, their larger timeframe charts had been strongly bullish.
Subsequently, consumers may look so as to add extra of those tokens in the event that they revisit key assist ranges.
Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.