Pepe gains 30% in a week as memecoin trading volumes explode
2024.09.27 16:07
Pepe (PEPE), an Ethereum-based memecoin, has rallied more than 31% in the past week as memecoins recover across the board.
Currently trading at $0.00001076, PEPE has reached to its highest value since Aug. 3, marking a 68% climb from its local low on Sept. 6.
PEPE/USD daily chart. Source: TradingView
Trading activity has also picked up in tandem with PEPE’s price surge. PEPE’s spot trading volumes topped $1.3 billion on Sept. 27, rising by 35% over the last 24 hours and 316% over the last seven days.
Its market capitalization has also reclaimed the $4 million mark, cementing its position as the third largest memecoin in the world.
It is also the most traded memecoin on Sept. 27, outpacing Dogecoin (DOGE) by over $700 million in volume.
Ultimately, after several weeks of sideways price movement, PEPE appears to be regaining its footing.
Memecoins flash green across the board
PEPE’s rally on Sept. 27 mirrors bullish price movements across the entire entire memecoin sector. Most cryptocurrencies in this sector have posted double-digit gains over the last week. DOGE and Shiba Inu (SHIB), the leading memecoins, have jumped 20.7% and 50% over the last seven days.
Solana-based Dogwifhat (WIF) has recorded 31% weekly gains, while Base’s Brett (BRETT) has rallied 28% over the same period.
Performance of top-cap memecoins. Source: CoinGecko
This widespread rally has pushed the total memecoin market value to $53.7 billion, a 34.5% leap in the past week, as per CoinMarketCap data.
Memecoin market cap and volume. Source: CoinMarketCap
Also, over $8.5 billion in memecoin trading volume was recorded in the past 24 hours alone. The resurgence is driven by investors once again embracing risk-on assets like memecoins.
Data from Alternative, a platform that analyzes “emotions and sentiments” around cryptocurrencies reveals a shit in market sentiments as the Crypto Fear & Greed Index has entered the “greed” zone at 61, up from 30 a month ago when the market was gripped with “fear.”
Crypto Fear & Greed Index. Source: Alternative.me
PEPE breaks out of a bearish pattern
On Sept. 20, PEPE’s price broke out of a descending parallel channel, igniting strength that saw it flip the 50-day, 100-day, and 200-day exponential moving averages (EMAs) to support.
“The price of $PEPE broke out of the descending channel,” declared popular analyst Cryptojack in a Set. 27 X post, adding, “I expect it to continue pumping.”
In the short term, the bulls are likely to continue the rebound toward the major resistance level at $0.00001260.
PEPE/USD daily chart. Source: TradingView
The sharp rise by the relative strength index and its position at 73 in the overbought region reinforces the buyers’ dominance in the market.
However, the overbought conditions could facilitate profit-taking, occasioning a slight correction before PEPE continues its uptrend.
The most important support zone is found just above the channel’s upper boundary trendline, where all the major EMAs currently sit.
Losing this support confluence could trigger a bearish scenario, with possible downside targets ranging between $0.00000668 and $0.00000596.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
