PEPE Surges 55.82% in Four Days, Reaches 4-Month High
1min read PEPE, a popular memecoin, has experienced a significant surge in value over the past four days, with its price increasing by 55.82%. This upward trend has pushed the coin to a 4-month high of $0.0000139, starting from a local low of $0.0000075. However, despite this impressive performance, there are indications that the trend may not be sustainable in the long run.
One of the key factors contributing to this price surge is the strong buying pressure from large holders, or "whales," who have accumulated 21.18 trillion PEPE tokens in just 24 hours. This level of buying activity is reminiscent of previous instances in November 2024 and January 2025, which were followed by sharp corrections in the coin's value. The Relative Strength Index (RSI) for PEPE has also reached 83, indicating that the coin is in overbought territory. Historically, when the RSI has climbed above 80, PEPE has experienced significant price corrections shortly after.
For example, in late November 2024, when the RSI reached 88, PEPE surged to $0.00002525. However, this was followed by a massive decline, with the memecoin dropping as low as $0.0000052. Similarly, in December 2024, when the RSI reached 80, prices rallied to an all-time high before experiencing a sharp correction. This pattern suggests that the current wave of buying could be a prelude to another sharp correction, as buyers become exhausted and sellers enter the market to take profits.
Despite these warning signs, there are also indications that the market is not yet folding. PEPE’s Exchange Flow Balance sits at -35.8 billion, showing more withdrawals than deposits. This is often seen as a bullish sign, as it suggests that traders are holding onto their tokens rather than selling them. The continued accumulation of PEPE tokens suggests that investors are still bullish and see future potential in the memecoin.
Looking ahead, PEPE is still in a strong downtrend, as confirmed by rising DMI. The Directional Momentum Index (DMI) shows that PEPE is experiencing strong upward momentum, with +DI at 46 and -DI at 25. If this trend continues, PEPE could cover the losses recorded on daily charts and attempt a move towards $0.000014. If it breaches this level, the next significant resistance is $0.000016. However, if the surge in RSI and buying spree leads to history repeating itself, PEPE could retrace to $0.0000107.
Ask Aime: What's behind PEPE's 55% surge?
