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The price of Pepe (PEPE) is currently facing the risk of a correction following an impressive 97% rally from its lows in August. The digital asset almost reached $0.000012 on Sunday, marking a significant increase from the sub-$0.000006 levels seen in August, effectively doubling its price.
Recent Performance and Market Dynamics
This dramatic rally allowed PEPE to break free from a short-term downtrend that had persisted since July, enabling its price to soar back sustainably above its 50-day and 200-day moving averages for the first time since May. This surge in price can be attributed to growing optimism surrounding global central bank easing, which surged in the latter half of September, positively impacting a wide range of crypto assets.
Moreover, there has been a notable acceleration in momentum for meme coins, with discussions intensifying among investors about the potential resurgence of what is often referred to as “meme season.” In fact, over a span of just three days last week, PEPE managed to rally over 30% from Thursday to Saturday. However, the excitement appears to have subsided, as PEPE’s price has now retreated nearly 10% from its weekend high, dropping below $0.000011.
Indicators of Potential Correction
The recent rise in PEPE’s price has pushed its 14-day Relative Strength Index (RSI) into overbought territory, peaking at 77 on Saturday, which is well above the 70 threshold that typically indicates overbought conditions. The RSI has since fallen back to just below 70, a level that in recent months has preceded price declines for PEPE.
Additionally, PEPE futures funding rates have remained elevated at around 0.010% nearly nonstop since mid-September, according to CoinGlass. Analysis of the funding rate trends suggests that fluctuating between positive and negative rates often coincides with local price lows, while consistently positive funding rates over several weeks signal potential price tops. Thus, the combination of an overbought RSI and high funding rates raises concerns that the price of PEPE may be set for a correction, with bears potentially aiming to test the late August high of just under $0.000010. There might also be a pullback to the 200-day moving average around $0.0000094 and the 50-day moving average at approximately $0.0000080.
Buying Opportunities Amid Price Retracement
Despite the potential for a near-term dip, meme coin investors may find buying opportunities in any price pullback of PEPE. Significant US economic data, such as the ISM PMI reports and jobs data due later this week, could alleviate recession fears for 2025. If the Federal Reserve continues to ease rates—which are currently high relative to inflation—while the economy shows resilience, it could create an ideal environment for risk assets.
This “Goldilocks” scenario, where interest rates are lowered amidst a stable economy, could potentially enhance the performance of Bitcoin and riskier cryptocurrencies, including meme coins like PEPE, especially as we approach the fourth quarter. With a new meme season possibly around the corner and just in time for the holiday season, the outlook could improve significantly.
Exploring New Opportunities: Pepe Unchained (PEPU)
Amidst these developments, some investors are looking beyond PEPE for greater returns. The anticipated meme season may allow PEPE’s price to soar by as much as 3-4x before the end of the year; however, there’s an even more enticing opportunity on the horizon that has caught the attention of crypto enthusiasts.
Pepe Unchained (PEPU), a new Pepe-inspired Ethereum layer-2 blockchain protocol, is currently drawing interest in meme coin trading circles. The PEPU presale has raised a staggering $16 million and continues to gain momentum. Analysts at Cryptonews.com have ranked Pepe Unchained as one of the top new meme coins and one of the best crypto presales to consider at this time. According to Crypto Arjay, an in-house presale analyst at Cryptonews.com, PEPU is poised to become a leading protocol in the meme coin trading space.
For those interested, you can explore opportunities to buy PEPU and potentially benefit from the upcoming market trends.
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