If PEPE can enforce a bullish structure breakout, buyer interest could be reignited. The price would need to move back above $0.00000145 to reverse the higher time frame outlook.

  • Market structure and momentum are firmly bearish.

  • A retest of the important support level to the south could bring a price rebound.

Pepe [PEPE] ranks as the third-largest meme coin by market cap, according to CoinMarketCap. The price trend over the past month has been strongly bearish, suggesting further declines are likely.

On-chain indicators also hint at a bearish outlook. Technical indicators also show bears dominating. Bitcoin [BTC] has seen a small rebound in recent hours, but its trend has been bearish in recent weeks. As of press time, it seems unlikely that PEPE will reverse its losses.

Failure to hold range lows keeps bearish trend alive

PEPE has been trading in a range in July (yellow). On July 27, the price retested resistance after breaking the range low a few days earlier. After the retest, PEPE has continued to decline. The series of lower highs and lower lows since July 24 suggests that a downtrend is underway.

The idea of ​​strong bearish momentum is reinforced by the RSI. It has been below the neutral 50 mark since mid-July. The OBV has also been slowly falling, showing rising selling pressure. PEPE has lost 19% of its value since losing its range. Another 30% loss could follow.

The $0.000001 level is the next support. However, if the price breaks below the $0.00000103 mark, it will indicate weakness among buyers. This could spur another drop to the $0.00000082 level, where PEPE reverses its downtrend from June.

PEPE open interest declines, indicating a bearish outlook

Open interest has been declining since July 14. This has been accompanied by a downward trend in prices, highlighting the frustration and bearish sentiment among bulls. Speculators are not willing to bid up memecoin, but most are not actively shorting PEPE either.

If PEPE can enforce a bullish structure breakout, buyer interest could be reignited. The price would need to move back above the $0.00000145 level to turn the higher time frame outlook to bullish.