Pepe, the memecoin that has captured the attention of cryptocurrency enthusiasts, has surged to new heights, raising alarms among analysts as buying momentum intensifies. As of recent reports, the token reached a peak price of $0.0000139, a notable increase from its local low of $0.0000075. Currently trading at $0.0000132, PEPE has recorded a remarkable 55.82% gain this week alone, although it experienced a slight dip of 2.05% within the last 24 hours.
Worryingly, the recent price movement has pushed the Relative Strength Index (RSI) to 83, indicating the asset is well into overbought territory. Historically, such elevated RSI levels have often signaled impending corrections, as the exuberance of buyers tends to wane and sellers take advantage of profits. Notably, large investors, often referred to as “whales,” have accumulated a staggering 21.18 trillion PEPE tokens in a short span, harkening back to previous market behaviors that foreshadowed significant downturns.
The pattern is reminiscent of past market trends, specifically seen in late 2024 and early 2025, when similar buying surges preceded sharp sell-offs. Analysts recall incidents when PEPE’s RSI surpassed 80, leading to record highs followed by swift declines. For instance, in late November 2024, the RSI peaked at 88, aligning with the token reaching a price of $0.00002525 before plummeting to as low as $0.0000052.
Despite the concerning RSI levels, some market indicators offer a more optimistic perspective. The current Exchange Flow Balance indicates a net withdrawal of 35.8 billion tokens, suggesting that traders are choosing to hold rather than sell, which could signal continued bullish sentiment among investors. This accumulator behavior can indicate confidence in the memecoin’s future potential, even amid signs of correction.
Further analysis reveals that PEPE is currently experiencing strong upward momentum, as indicated by the Directional Movement Index (DMI) readings. With positive directional indicators hovering around 46 and negatives at 25, there remains a possibility of the token continuing its upward trajectory. Should this trend sustain, experts anticipate that PEPE could potentially recapture losses on daily charts and aim for resistance levels around $0.000014, and possibly up to $0.000016 if bullish sentiment prevails.
However, if recent historical patterns hold true, a retracement to around $0.0000107 cannot be ruled out. Traders and analysts alike will be closely watching the market dynamics in the coming days, weighing the balance between growing demand and the risk of imminent corrections. As PEPE navigates this critical juncture, the cryptocurrency community remains poised for both optimistic rallies and potential setbacks, reflective of the often unpredictable nature of the memecoin market.