Signs that PEPE traders should be careful of

The cryptocurrency market has witnessed significant fluctuations recently, and the popular meme coin “PEPE” emerged as one of the currencies affected by the downward trend. However, technical indicators indicated a possible reversal of this trend.

PEPE is facing important support points after being exposed to significant selling pressure. The currency was trading at $0.000001785, recording a 1% decline over the past 24 hours, raising traders’ concerns about the continued decline. However, the 50-day moving average, hovering around $0.000002041, indicates that the bull market structure remains despite the recent declines. The narrowing of the gap between the 50-day and 200-day moving average also shows weakening momentum.

As for technical indicators, they gave mixed signals. The Relative Strength Index settled at 43.63, a level approaching the oversold zone, which opens the way for further decline or rebound based on the development of market sentiment. In addition, the price action showed a series of lower highs, with an increase in downward momentum according to the MACD indicator.

As for volume analysis, the balanced volume (OBV) indicator indicated sustained accumulation despite price weakness, which may indicate unreflected fundamental strength in the symbol’s value. The Ichimoku Cloud formation also showed a mixed outlook, with the price testing the lower boundary of the cloud at $0.000001887, an important dynamic support level.

Going forward, PEPE faces resistance at $0.000002. A break above this level could trigger a bullish wave towards $0.0000025. Conversely, failure to maintain support could lead to the price falling towards $0.0000015. The ADX reading indicated a weakening trend, which may indicate that the market is preparing for a shift in trend.

In general, traders should closely monitor volume patterns and technical signals, as the symbol’s historical volatility may follow periods of weakness with a sharp recovery move.