Pepe (PEPE) Price Analysis: Risk of Correction After Impressive Rally
The Pepe (PEPE) Price has surged by 97% from its August lows, nearly hitting $0.000012 on Sunday. This rally broke a short-term downtrend since July, marking a significant milestone for the Digital asset. With prices rebounding above the 50 and 200-day moving averages for the first time since May, investors are optimistic.
The recent rally is attributed to increased enthusiasm around global central bank easing in September, lifting various Crypto Assets. Additionally, the acceleration in meme coins has fueled discussions about the resurgence of meme season in the Market.
Despite the impressive rally, the PEPE Price retraced nearly 10% from its weekend peak of $0.000011, raising concerns about a potential bearish reversal. Overbought signals and technical indicators suggest that PEPE may be due for a correction.
PEPE Price – Set For a Near-term Tumble?
The 14-day Relative Strength Index (RSI) for PEPE has climbed into overbought territory, reaching 77 on Saturday, above the 70 threshold commonly used to identify overbought conditions. Historically, RSI spikes have preceded Price declines for PEPE in recent months.
Moreover, PEPE futures funding rates have remained consistently elevated around 0.010% since mid-September, indicating potential Market overheating. An analysis of funding rates suggests that fluctuations between positive and negative rates coincide with Price bottoms, while sustained positive rates precede Price peaks.
Considering the overbought RSI signal and funding rate patterns, the PEPE Price might be poised for a corrective phase. Traders eyeing a downside target might look towards the late August high of just under $0.000010, with potential support at the 200-day and 50-day moving averages.
Buy the PEPE Price Dip?
While concerns of a Price correction loom, investors may view any potential dip in PEPE as a buying opportunity. Economic Data from the US, particularly PMI reports and jobs Data, could influence Market sentiment. A positive economic outlook coupled with ongoing Federal Reserve rate adjustments could support a strong rebound in risk assets.
A scenario where the US Economy performs well amid rate cuts could be beneficial for cryptocurrencies like Bitcoin and meme coins such as Pepe. As Q4 unfolds, a resurgence in meme season and positive Market sentiment could drive Price momentum heading into the holiday season.
Better Alternative to Consider – Pepe Unchained (PEPU)
For investors seeking higher upside potential, exploring projects like Pepe Unchained (PEPU) could offer promising opportunities. This Ethereum layer-2 Protocol has gained traction in meme coin circles, raising $16 million in its presale.
Analysts rank PEPU as one of the best new meme coins and a top crypto presale to watch. The Protocol’s innovative blockchain design aims to revolutionize meme coin trading, attracting interest from crypto enthusiasts. With a potential surge of 3-4x by year-end, PEPU presents an exciting investment proposition for risk-seeking individuals.
In conclusion, while the PEPE Price faces near-term uncertainties, opportunities exist for investors willing to navigate Market volatility and explore emerging blockchain initiatives like PEPU. As Market dynamics evolve, staying informed and proactive can help individuals make informed decisions in the ever-changing crypto landscape.
