The RSI index of PEPE reached 83 as buyers dominated, raising concerns about volatility and the possibility of trend exhaustion.
The 'whales' accumulated 21.18 trillion PEPE, reflecting historical buying zones that often lead to major corrections.
Amid the cryptocurrency frenzy, Pepe [PEPE] recorded four consecutive days of increase. From a local low of $0.0000075, it rose to a four-month high of $0.0000139.
At press time, it was trading at $0.0000132—up 55.82% this week, although it has decreased by 2.05% in the past 24 hours. This indicates strong demand, but there are signs that this trend may not last long.
The recent price increase indicates strong demand with buyers dominating the market.
This buying pressure is increasingly overwhelming for the major holders of PEPE. Therefore, the 'whales' have purchased 21.18 trillion Tokens in just 24 hours.
Déjà vu or signaling risk? The market has been through this before.
Significant buying pressure from PEPE 'whales' occurred in November 2024 and January 2025.
Source: IntoTheBlock
This buying surge has pushed the RSI index to 83, entering the overbought zone. The last time RSI exceeded 80, PEPE reached an all-time high—only to crash shortly after.
History shows that when buying activity increases as recently observed, it often leads to price corrections when buyers exhaust themselves and sellers step in to take profits.
For example, in 2024, when RSI reached 88, Pepe surged to $0.00002525 by the end of November. When it hit 80, the price skyrocketed to an all-time high in December.
After this price surge, the memecoin dropped sharply, down to $0.0000052.
Source: TradingView
If history repeats itself, this shopping spree could be the start of another strong correction.
What does the PEPE chart indicate?
According to TinTucBitcoin's analysis, with the RSI reaching a level associated with correction, signs of correction have been waiting in recent days.
As mentioned, the memecoin has declined over the past day, not in line with the trend of the previous four days.
However, the market shows no signs of slowing down. The Trading Flow Balance of PEPE is -35.8 billion, indicating more withdrawals than deposits. This is often a positive signal, as it suggests traders are holding, not selling.
Source: Santiment
Ongoing accumulation shows that investors remain optimistic and see future potential with the memecoin.
What does the future hold for memecoins?
PEPE is still on a strong downtrend at the moment, confirmed by an increasing DMI index. Considering the Directional Momentum, PEPE is experiencing strong momentum with +DI at 46 and -DI at 25.
This momentum indicates that the current trend is likely to continue.
If the trend continues, Pepe will recover the losses recorded on the daily chart and attempt to reach $0.000014. If it surpasses this level, the next notable resistance is $0.000016.
However, if the RSI surge and buying lead to history repeating itself, Pepe will return to $0.0000107.
Source: https://tintucbitcoin.com/pepe-tang-55-ca-voi-dang-bay-nha-dau-tu/
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