- Pepe has surged by 39.07% over the past week.
- Pepe’s fundamentals indicated that it has reached overbought levels, with the RSI hitting 76.5.
As a seasoned researcher with over two decades of experience in the financial markets, I have seen countless bull runs and bear markets. The recent surge in memecoins like Pepe (PEPE) is reminiscent of the Dot-Com bubble in the late 90s, where hype often overshadowed fundamentals.
For the last fortnight, cryptocurrency markets have seen considerable upward trends. In this surge of progress, meme-based coins are taking charge, recording impressive increases in value.
One such memecoin is Pepe [PEPE], which experienced a sustained uptrend over the past two weeks.
Currently, at the moment, PEPE is being traded for approximately 0.0000114 dollars. This represents a significant jump of 44.8% in the monthly chart, and an additional boost of 39.07% to the ongoing bullish trend over the last seven days.
Despite these gains, the memecoin remained relatively low from its recent high of $0.0001314. Equally, it was approximately 32% below its ATH of $0.000017.
Given the current market situation, there’s uncertainty as to whether PEPE‘s recent upward trend can continue or if it might face a reversal instead.
Pepe’s RSI reaches overbought levels
Based on AMBCrypto’s assessment, PEPE was demonstrating significant positive momentum, as buyers held sway over the market.
Yet, the Relative Strength Index (RSI) has climbed above 76.5, a zone often suggesting a possible shift in the ongoing trend direction, potentially indicating a reversal may occur.
In this situation, when a market becomes ‘overbought,’ it usually means that the rapid increase in price could slow down or even reverse direction, possibly leading to a pause or stabilization in its movement.
However, although the overbought conditions suggest potential for a pullback, it does not guarantee a reversal.
Consequently, although PEPE shows signs of being overbought as indicated by its RSI, our examination suggests it’s currently experiencing a robust upward trend. Under these circumstances, a quick reversal seems improbable in the near future.
Implications on PEPE’s charts?
While RSI indicates a possible change in trend, it’s crucial to examine other factors that might indicate the same as well.
For starters, Pepe’s adjusted price DAA divergence has remained positive throughout the past week.
It seems that Pepe’s actively used addresses are on the rise, indicating an uptick in user engagement and curiosity. However, the current market value doesn’t appear to mirror this trend. Nevertheless, given its growing adoption, PEPE might experience additional price rises in the future.
Moreover, Pepe’s Funding Rate, consolidated across exchanges, has been advantageous over the past week. This indicates that long position holders have been compensating short position holders.
It shows that investors believe in the potential worth of the memecoin, as they’re prepared to pay more than usual to maintain their ownership, indicating their faith in its future value.
Source Coinglass
In summary, the optimistic market mood is demonstrated by more frequent liquidations for traders who are shorting (betting on a decrease) compared to those who are going long (betting on an increase). Over the last four days, traders holding short positions have experienced significant forced selling or liquidation.
Read Pepe’s [PEPE] Price Prediction 2024–2025
Given our examination, while Pepe’s RSI indicates an overbought state, its memecoin trend continues to surge. Consequently, this suggests it may persist in this state for some time before we see a shift towards a downtrend.
Given the current situation, if the existing trends continue, Pepe might aim for the next major resistance point around 0.0000119 USD. In case of a correction, it’s likely that the memecoin could drop to approximately 0.000009847 USD.
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2024-09-30 15:36