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The price of Pepe (PEPE) is facing the possibility of a correction following its remarkable 97% increase from the lows observed in August.
On Sunday, PEPE nearly reached $0.000012, representing a roughly 2x increase from the sub-$0.000006 lows recorded in August.
This PEPE rally has successfully broken a significant short-term downtrend that has persisted since July, allowing its price to sustainably surpass both the 50 and 200-day moving averages for the first time since May.
The remarkable rise coincided with a surge in optimism regarding global central bank easing in the latter half of September, which boosted crypto assets across the board.
Additionally, there is a notable increase in upward momentum within meme coins. Some investors are speculating about the resurgence of meme season for Pepe.
From Thursday to Saturday last week, the PEPE price surged over 30% within three days.
However, the price of Pepe has since dropped nearly 10% from its weekend peaks, falling below $0.000011.
There are concerns that this decline could signal the start of a bearish reversal, with indicators suggesting that Pepe may have become overbought.
PEPE Price – Is a Near-term Decline Imminent?
The extraordinary rally in the price of Pepe over the previous weeks has driven its 14-day Relative Strength Index (RSI) firmly into overbought territory.
On Saturday, the RSI climbed to 77, exceeding the 70 threshold commonly used to determine if an asset is overbought.
It has since decreased to just below 70. However, in recent months, increases in the RSI have preceded declines in the price of Pepe.
Meanwhile, PEPE futures funding rates have remained elevated around 0.010% almost continuously since mid-September, according to CoinGlass.
An analysis of the PEPE funding rate over the last three months indicates that periods of fluctuation between positive and negative funding rates are often linked to local price lows.
In contrast, consistent positive funding rates lasting a week or longer have generally correlated with local price peaks.
This, coupled with the overbought RSI indication, suggests that the price of Pepe may be poised for a correction.
Bears might aim for a near-term test of its late August peak of just under $0.000010.
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The 200-day moving average at $0.0000094 and the 50-day moving average at $0.0000080 could also come into play.
Should You Buy the PEPE Price Dip?
Nonetheless, meme coin investors may want to consider purchasing any near-term dips in the PEPE price.
If US economic data released this week (particularly the ISM PMI reports and US jobs data on Friday) alleviates concerns about a recession in the US in 2025, it could set the stage for a robust rebound.
The Federal Reserve is committed to easing rates, which are currently high compared to inflation, to prevent its monetary policy from becoming excessively restrictive, regardless of the economy’s performance.
A scenario where the Fed lowers interest rates while the US economy remains strong would create an ideal “goldilocks” environment for risk assets.
This could support Bitcoin and other riskier cryptocurrencies, including meme coins like Pepe, to perform exceptionally well in the fourth quarter.
A new meme season may be on the horizon, potentially coinciding with the Christmas period.
Consider a Better Alternative – Pepe Unchained (PEPU)
A fresh meme season could propel the PEPE price to surge rapidly by 3-4x before the year’s end.
While this is impressive, some crypto enthusiasts may seek even greater upside potential.
Meme coin presales offer an excellent opportunity to engage in high-potential projects early on at a low valuation.
PEPE investors may find particular interest in a promising new Pepe-inspired Ethereum layer-2 blockchain protocol known as Pepe Unchained (PEPU).
PEPU has been generating excitement in meme coin trading circles, with its presale currently raising an astounding $16 million.
Boom! $16M raised!
Pepe Unchained continues to break records, and we’re not slowing down!pic.twitter.com/Qtkw0w0n85
— Pepe Unchained (@pepe_unchained) September 28, 2024
pic.twitter.com/Qtkw0w0n85Analysts at Cryptonews.com have ranked Pepe Unchained as one of their top new meme coins and the best crypto presales to consider at this moment.
Cryptonews.com’s in-house presale analyst, Crypto Arjay, explains in the video below why he believes the Pepu Unchained blockchain will emerge as a leading protocol for meme coin trading.
Buy PEPU Here
The post PEPE Price Analysis: Overbought Signals Could Trigger Drop After 97% Surge appeared first on Cryptonews.
