- PEPE approaches critical support at $0.00000657.
- Post-election memecoin interest can impact PEPE’s trend.
- Analyst Grum1in suggests careful buying with a stop-limit below support.
It’s been a long time since Pepe (PEPE) price has been in the bearish zone. This memecoin is close to the lower Bollinger Band, with the 20-day simple moving average (SMA) acting as a resistance level.
As of writing, the current price of the PEPE token is $0.058206. It is beneath the 20-day SMA of $0.00000953. Now, many crypto analysts are optimistic about the future of this meme coin.
Positive market conditions, increased adoption, and PEPE’s appeal among retail investors can contribute to the price surge.
Bearish Indicators For PEPE Memecoin
A bearish trend is there for PEPE as it is trading near the lower Bollinger Band, located at $ 0.00000804. The upper Bollinger Band is at $0.00001103, which is a higher resistance level.
Also, the 20-day SMA is the first level PEPE needs to break to reach a bullish signal. At press time, the SMA was at around $0.00000953.
Investors carefully monitor the price of PEPE. It has been struggling to rise above this level. The current bearish pattern implies that the price of PEPE can go down even more if the demand refuses to surge. There is more selling pressure than buying interest in the market right now.
RSI Signals Weak Momentum
The Relative Strength Index (RSI) of PEPE is at 36.83. This RSI level indicates weak bearish momentum. If the RSI dips further, PEPE could attract buyers looking for a potential rebound.
However, bears would maintain pressure on PEPE if the RSI rate didn’t go above the 50 level. If this happens, the downtrend will persist.
Also, the U.S. midterm elections can impact meme coin demand. Many analysts have warned crypto investors that the popularity of meme tokens like PEPE will dip after the elections on November 5.
Analyst’s Perspective
Recently, crypto analyst Grum1in identified $0.00000657 as a critical support level for PEPE. He used this price set as a suggestion for traders.
Grum1in has advised cautious entry at this level. He said that traders need to be aware of setting stop-limit orders below the support. It will help them limit downside risk in case of a further breakdown.
According to Grum1in, if the price falls below $0.00000657 for PEPE, then the bearish pressure may lead to further extensions. In this case, the analyst advises that it may be wise not to enter the market without a clear direction.
Potential Outcomes For Pepe
Rebound: If PEPE bounces off the key support level at $0.00000657, it could offer a short-term buying opportunity. This would require traders to employ tight risk controls to manage potential losses.
Further Drop: If the PEPE fails to hold the support level and the RSI does not rise above 50, the bearish trend might continue, leading to further price declines.
Disclaimer
This article is for informational purposes only. Crypto investment involves inherent risks due to the volatility in price. Readers should conduct their own research before making any investment decision. Also, you can consult a crypto expert before investing in cryptocurrencies.
