Highlights:
- PEPE price is currently trending toward the $0.00001267 resistance
- Rally through resistance would see more money flow into PEPE short-term
- Trump’s win and Fed interest rate cuts could push PEPE to $0.0001 soon
PEPE continues to record strong growth just as it has done throughout the week. In the last 24 hours, PEPE has gained by 3.54% and, at the time of going to press, was trading at $0.00001078. Trading volumes are also on the rise and, at the time of writing, stood at $1.42 billion, up by 6.23%.
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Technical Analysis – PEPE Price Trending Towards Key Resistance
From the charts, PEPE has rallied through three resistance levels in three days. This is an indicator that bulls are firmly in control. However, for a parabolic price move to happen, PEPE needs to rally through the $0.00001267 resistance.
A rally through this could see PEPE kill a zero in the short term. Some analysts are predicting that the PEPE price could trade at 0.0001 or more before December. On the flip side, if bears regain control and push the PEPE price through $0.00001015, which is now support, then a correction to the $0.00000973 support could follow. Of these scenarios, the odds are higher that PEPE could continue the rally that started after the US election.
Expert Views Hint at More Upside for PEPE and Meme Coins
Before the US election, there were many views about what impacts the election would have on the future of the meme coins. While Trump’s win was largely regarded as good for the overall crypto economy, there remained some uncertainties as to how his win could affect meme coins.
Columbia Business School professor Omid Malekan argued that a Trump victory might lessen the enthusiasm toward meme coins. He noted that the reason meme coins have grown is their simpler economics and fairer distribution as opposed to venture-backed complex projects. He noted that the Trump government may adopt policies that eliminate these issues by allowing fee switching and dividends for the token holders. This, Malekan noted, would presumably kill the case for meme coins.
To further ingratiate myself with Solana fans, here's an argument of why a Trump win and/or Republican sweep (which Polymarket has at 50%) is bearish memecoins.
i) Memecoins themselves are a form of economic populism. They are a statement against the unfair ( and often grifty)…
— Omid Malekan 🧙🏽♂️ (@malekanoms) October 27, 2024
The SEC and Expanding Money Supply Angle
Nonetheless, other experts had a different viewpoint. Investor Nic Carter believed that meme coins were popular because of the backlash towards the SEC during Gary Gensler’s tenure.
Analyst Murad voiced a more apolitical view by stating that instead of politics, the growth of the global money supply is the main reason for meme coins. He explained that given an M2 money supply at $107.1 trillion, everyone is looking for a risk-on trade to be executed as opposed to a fundamental trade.
Regardless of opinion divergence, traders’ interest in meme coins has seemingly not waned off as it retains a market cap of slightly above $56 billion as of October. Those who argued that a Trump win could favor meme coins appear to carry the day. The PEPE price has particularly accelerated after the Federal Reserve reduced interest rates.
BREAKING: 🇺🇸
Fed cuts rates by 0.25% to 4.5%
The Bank of England also cut rates today. pic.twitter.com/y9VKNBHOOo
— Radar🚨 (@RadarHits) November 7, 2024
This means analyst Murad’s take that the expanding money supply is more important to meme coins than politics is the right one. With the Federal Reserve expected to cut interest rates several times in early next year, the odds are high that the PEPE price rally could continue for the remainder of the year.
PEPE’s Fair Token Distribution
There is also the fact that PEPE is one of the best-known meme coins in the market today. It also has a fairer token distribution than most meme coins. This could give investors more confidence in it compared to many other meme coins in the market today. This could trigger FOMO which could see PEPE hit new highs in the short term.
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