The cryptocurrency market continues to show high volatility, and the PEPE token is no exception. Below, we share three fundamental recommendations for analyzing the PEPE/USDT pair and making more informed decisions.
1. Monitor the Relationship between Price and Moving Averages (MA)
The current price of PEPE is $0.00000876, which is well below the 7-period moving average (MA7), located at $0.00001243.
This situation suggests short-term bearish resistance, as the price has not managed to overcome that average.
Recommended action:
If the price continues to fail to surpass the MA(7), we could be facing confirmation of a bearish trend. Consider taking partial profits if there are signs of a pullback.
2. Evaluate Volume and Liquidity
The transaction volume of PEPE in the last 24 hours is 24.68T, while the volume in USDT is $203.45M.
This difference could be a sign of high volatility or possible market manipulation.
Recommended action:
Check the actual market liquidity before making large trades. Ensure that the sustained volume supports the current bullish momentum of 13.18% and is not just a momentary fluctuation.
3. Analyze Technical Indicators and Selling Pressure
Key indicators: The MACD and the Parabolic SAR should be monitored to identify potential trend changes.
Currently, there are 2929T in active sell orders, which may act as strong resistance against sharp increases.
Recommended action:
If the SAR is above the price, it may indicate a bearish reversal. It is wise to apply a tight stop-loss to protect against strong corrections.
Conclusion
The PEPE token shows mixed signals: recent bullish momentum, but with technical and volume factors that require attention. In a high-volatility environment, it is crucial to prioritize risk management and confirm signals with multiple indicators before trading.
