• Last week, PEPE saw a 96.7% rally from mid-May to mid-June, but the trading volume has been decreasing in recent days.
• The OBV has retraced almost all of its gains from 20 June, showing intense selling pressure in the market.
• The MVRV ratio hinted at increased profit-taking from holders due to the short-term holders realizing their gains.
PEPE experienced a strong rally which gained 96.7% since mid-May until mid-June. However, recent days have seen a decrease in trading volume and an increasing sell pressure indicated by the OBV indicator. Profit taking among short term holders was evidenced by the MVRV ratio falling into negative territory.
Price Action Analysis
The bullish market structure break on the 6 hour chart occurred on 16 June and was followed by near 100% rally in prices. Over the last few days however, the bullish momentum of PEPE began to slow down leading to a bearish shift in market structure as prices fell below $0.00000145; notably below the recent higher low and RSI falling below neutral 50 mark.
Fibonacci Retracement Levels
The rally from last week was used to plot Fibonacci retracement levels which showed that 50% and 61.8% levels could act as potential support for PEPE bulls looking to reverse current bearish trend.
On Balance Volume (OBV)
The OBV indicator of PEPE has retraced almost all of its gains from 20 June, indicating intense selling pressure in the market with traders liquidating their positions despite price action indicating otherwise on smaller time frames like 6 hour charts mentioned above and RSI dropping below neutral 50 mark recently .
Market Value/Realized Value Ratio (MVRV)
The MVRV ratio has slipped into negative territory signaling increased profit taking activity amongst holders as short term holders are realizing their gains adding to sell pressure behind meme coin .