PEPE price is currently trading in the bearish zone. The memecoin is close to the lower Bollinger Band with the 20-day simple moving average (SMA) acting as a resistance level.
At the moment, PEPE is trading at $0.00000816 which is still beneath the 20-day SMA of $0.00000953, an indication of further selling.
The U.S. midterm election that is set for tomorrow poses a risk in meme coin sentiment where investors are likely to be more careful, as seen in the fluctuating PEPE market trend.
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Bearish Indicators and Support Levels
The trading activity of PEPE near the lower Bollinger Band located at $ 0.00000804 suggests a bearish trend with potentially oversold conditions.
The Bollinger Bands, which measure price volatility, indicate that PEPE is trading near the lower Bollinger Band, which points to weak upward moves. In addition, the upper Bollinger Band is at $0.00001103, which is a higher resistance level, therefore making the 20-day SMA the first level that PEPE needs to break to afford a bullish signal.
This bearish pattern implies that the price of PEPE can go down even more if the demand refuses to surge. Another important level that PEPE needs to cross is the 20-day SMA which is currently at $0.00000953 to get traders’ interest.
Furthermore, breaking above this level could push PEPE towards the upper Bollinger Band.
Analyst’s View on Key Support and Risk Management
Crypto analyst Grum1in has identified $0.00000657 as a key support level for PEPE, using this price set as a recommendation for high-tolerant traders.
👇Let’s quickly figure out what’s happening with $PEPE:$PEPE is currently declining toward a level from which a rebound may occur.
As it approaches this support level, you can cautiously start buying, but if the price falls below this level, it's better to exit with a… pic.twitter.com/3jzSQsmEW3
— Grumlin Mystery (@grum1in) November 4, 2024
This price level has been known to attract buyers, hence making it an important level to look at as PEPE gets closer.
Grum1in advises cautious entry at this level, recommending that traders set stop-limit orders below the support to limit downside risk in case of a further breakdown.
According to Grum1in, if the price falls below $0.00000657, then the bearish pressure may lead to further extensions. In this case, the analyst advises that maybe it would be wise not to enter the market until there is a clear direction.
On the other hand, a bounce off this support may offer a short-term buying signal once again, offering traders a chance, provided that traders employ tight risk controls.
RSI Signals Weak Momentum Amid Growing Buyer Interest
The Relative Strength Index (RSI) of PEPE stands at 36.83 and it is approaching the oversold level, which is around 30. This RSI level suggests weak bearish momentum, indicating that PEPE could attract buyers looking for a potential rebound if the RSI dips further.
But if the RSI rate failed to go above the 50 level, bears would maintain pressure on PEPE, and the downtrend would continue.
Still, the looming U.S. midterm elections could impact meme coin demand, with analysts warning that the popularity of meme tokens like PEPE may dip after tomorrow’s elections, on November 5.
