Pepe coin price prediction remains bearish, but can THIS group gain?

Bearish Outlook for PEPE Despite Recent Gains

Despite a surge in the latter half of July, PEPE has maintained a bearish trend. Traders should be wary of a potential short squeeze in the near future.

After a rejection at the $0.000013 resistance zone, PEPE has been trending downwards. Recent reports indicate the transfer of 400 million PEPE tokens worth $4.22 million to Binance, suggesting a potential sell-off.

The combination of price action and market indicators paint a bearish picture for PEPE. However, bulls may find solace in the fair value gap, which could provide support for trapped buyers.

Mid-Month Price Surge

In mid-July, PEPE experienced a rapid 52% price gain over five days. This surge created a significant support zone, highlighted in white on the daily chart. At present, PEPE is trading within this support zone.

Bearish Market Structure

The bearish market structure became evident in the first week of July. PEPE bulls have failed to breach the recent lower high on June 26th. The daily RSI has dipped below neutral, indicating strong bearish momentum.

Potential for Short Squeeze

Despite the bearish indicators, the CMF remains above +0.05, suggesting significant buying pressure. This could potentially trigger a price reversal from the $0.000009-$0.00001 zone.

The high number of short positions relative to long positions increases the likelihood of a short squeeze. Liquidation levels at $0.000011 and $0.0000115 present potential targets for PEPE's upward movement. Swing traders may also consider using these levels as selling opportunities within the overall bearish structure.