Pepe price erasing the entire May 5 dump in 24 hours could be a bull trap

Pepe (PEPE) price has recorded a stunning rally over the previous day, restoring all the ground lost during the Monday trading session. While a first looker may see this as a bull market signal for the sensational meme coin, other fundamentals indicate that the rally will not sustain.

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 Pepe (PEPE) price shows a bullish bias in the short term after rising over 30% in the last 24 hours. The stunning move has seen the sensational meme coin reclaim the losses made during the May 6 trading session. While this looks bullish, fundamental indicators show a lack of momentum to sustain the rally.

Based on the four-hour chart below for PEPE/USDT, Pepe price remains under the foothold of the multi-month downtrend line without clear signs of a breakout. The attempts made on May 13 and 20 proved premature as the meme coin's price was rejected almost immediately.

At the current price of $0.00000119, Pepe price is facing overhead pressure from the supplier congestion zones presented by the 50-, 100-, and 200-day Simple Moving Averages. Selling pressure from these zones could repel PEPE south, suppressing the meme coin under the downtrend line.

The falling Relative Strength Index (RSI) tipping south suggests a falling momentum and therefore backs this bearish outlook. Similarly, the Moving Average Convergence Divergence (MACD) and Awesome Oscillator (AO) indicators are below the midline, indicating the presence of bears in the market.

PEPE/USDT 4-hour chart

On-chain metrics bolster the bullish case

On-chain metrics from IntoTheBlock also bolster the case for the bears, showing robust resistance around the $0.00000100 and $0.00000200 range, where sellers abound. Therefore, any attempts by the bulls to raise Pepe price higher would be challenged by approximately 22,120 addresses who bought approximately 179.54 trillion PEPE at an average price of $0.00000100.

With them looking to break even, hopes for a breakout for Pepe price remain slim.

On the flip side, if selling pressure increases, Pepe price could fall toward the $0.00000090 support floor, or in the dire case, fall lower to collect buy-side liquidity underneath.