Home » Journal » Meme Coin Wave Lifts PEPE to New Heights, Price up Over 300% – But Here’s the Catch

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Meme Coin Wave Lifts PEPE to New Heights, Price up Over 300% – But Here’s the Catch

Petar Jovanović

March 3, 2024

Over the past week, PEPE coin has seen its price skyrocket over 300% to hit a new all-time high of $0.0000056. This meme coin explosion has been fueled by broader strength in the meme coin sector as coins like DOGE, SHIB, BONK and FLOKI have all surged between 60-250% over the past seven days. Clearly, this has been a “meme coin week” as these often-whimsical coins capture investor attention.

PEPE’s massive gains can be partly explained by analyzing its price chart. For months, PEPE had been rangebound, trading within a descending channel represented by the blue lines on the chart. However, about a week ago PEPE saw a heavy breakout above this channel resistance.

This put PEPE into a state of “discovery mode”, seeking to find new price highs after breaching the long-held channel resistance. And find new highs it did, rocketing over 300% from its breakout point.

Another bullish indicator highlighted by TopgOptions is PEPE’s positioning relative to its 200-day moving average, which currently sits at around $0.0000011 according to the chart. By blasting well above this long-term trend indicator, it shows the strength of PEPE’s current momentum-driven move.

Daily RSI also provides insight, currently at 66, nearing an overbought level of 76. Historically, significant corrections have followed RSI moves above 76, TopgOptions trader points out, implying some consolidation may be on the horizon.

Taking the above factors into account, TopgOptions used Fibonacci retracement levels to identify a potential interim price target of $0.00000243, which corresponds to the 0.618 retracement level on the tool. This technical analysis highlights how certain indicators are aligning for further short-term PEPE price gains, even after its parabolic 300% surge over the last week.

Of course, as with many high-flying meme assets, PEPE’s trajectory remains highly volatile and dependent on continued social and market tailwinds.

In conclusion, PEPE coin has delivered astronomical returns for investors over the last several days amid strength in meme coins more broadly. Technical analysis sheds light on the drivers of this surge and points to potential for further upside before a deeper correction. However, as with all high-risk meme coin plays, investors would be wise to proceed with caution given the sector’s extreme volatility and reliance on unpredictable online hype cycles.

You may also be interested in:

• Meme Coin Price Explosion: DOGE, SHIB, BONK, and PEPE Surge to New Highs, But Don’t Overlook These New Low-Cap Cryptos
• ApeCoin Goes Bananas; APE Rally Has Further to Run After Breaking Key Resistance
• Ethereum (ETH) New 2024 Highs Sees Investors Join Kelexo (KLXO) Leverage & Loaning Sensation as Presale Rockets Pre Bitcoin (BTC) Halving

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