Pepe, a popular memecoin, is gaining traction as it recently experienced four consecutive days of price increases, culminating in a notable rise from a local low of $0.0000075 to a four-month high of $0.0000139. As interest grows, the currency is currently trading at $0.0000132, representing a remarkable 55.82% increase this week, despite a minor 2.05% dip in the last 24 hours. Analysts caution, however, that the market could be on the brink of volatility as buyer fatigue sets in.
The recent bullish trend has attracted major investors, often referred to as “whales,” who amassed an impressive 21.18 trillion PEPE tokens within a 24-hour period. This significant accumulation echoes previous historical patterns seen during periods leading to sharp market corrections. In late 2024 and early 2025, a similar influx of whale activity preceded downturns, raising questions about the sustainability of the current price momentum.
The Relative Strength Index (RSI) for PEPE recently surged to 83, indicating the asset is deeply in overbought territory. A similar RSI peak was seen in past instances when the token reached record highs, only to plummet shortly after. Viewing historical data, past instances where the RSI exceeded 80 have often led to substantial price corrections, as investor enthusiasm wanes and profit-taking occurs.
For example, in November 2024, PEPE achieved a price of $0.00002525 with an RSI of 88, before subsequently falling to $0.0000052 following a major decline. This pattern suggests that the current buying spree might be an early signal of potential price retracement looming on the horizon.
Despite these warning signs, traders remain optimistic. The Exchange Flow Balance for PEPE indicates a deficit of 35.8 billion, implying more tokens are being taken off exchanges than being deposited. This trend generally signifies that investors are holding their assets in anticipation of positive future movements, rather than liquidating them.
As of now, PEPE’s market performance shows it remains in a downtrend, but the Directional Momentum Indicator reveals a strong upward momentum, with a +DI of 46 compared to a -DI of 25. This suggests that the current bullish trend might continue, with hopes of overcoming resistance levels.
If PEPE can maintain its momentum, traders may target a recovery to around $0.000014. However, if history is any guide, the combination of an inflated RSI and increased whale buying could lead to a downturn, possibly retracing to levels around $0.0000107.
Investors are closely monitoring these developments as they navigate a complex landscape marked by both potential and peril. The overall sentiment indicates a cautious optimism within the memecoin community, with many holding out hope for further gains, while also remaining wary of the potential pitfalls that previous patterns suggest.
