PEPE Surges 115% in 30 Days, But Signs Point to Potential Correction Ahead

• PEPE has gained over 100% in the past month and has been the highest-gaining crypto in the top 100 tokens over the past week as meme coins led a market rally.
• Over 95% of PEPE owners are in profit, but technical indicators point to the rally being unsustainable, as the RSI and MFI indexes show that the token is overbought.

It’s been an excellent week for meme coins. Over the past seven days, tokens like Bonk and WIF gained 39% and 19%, respectively, with BOME and FLOKI following closely behind at 18% and 16%. However, the real star has been PEPE, the frog-themed meme coin, which has doubled its price in the past month.

PEPE trades at $0.00001603 at press time, gaining 6.9% in the past day, unhindered by the cyclical market downturn over the weekend, despite an 18% dip in its trading volume to $1.93 billion. 

The gains have been sustained over the past week, where the meme coin has gained an incredible 76.46%, the highest spike in the top 100 coins and some distance ahead of second-placed Lido DAO, which gained 52% in that time.

Over the past month, PEPE has gained 112%, effectively doubling its price to set a new all-time high for a $6.69 billion market cap, flipping Litecoin to take the 20th position on the charts. This also cements its position as the third-largest meme coin ahead of WIF and only behind market leaders DOGE and SHIB.

Can PEPE Maintain its Gains?

Analysts have been investigating whether the meme coin can maintain its gains. A key metric supporting the meme coin’s rise is the continued support from the whales. One such whale recently withdrew over 500 billion from Binance, worth nearly $8 million.

In fact, over the past two weeks, the net exchange flow has been negative for PEPE as more holders withdraw their tokens, indicating they intend to hold their tokens for long and reducing the selling pressure on the trading platforms.

Additionally, the token’s rise comes at a time when the altcoin season is expected to kick in. Altcoins have historically enjoyed their best runs following the Bitcoin halving, and analysts expect this trend to continue. If the rest of the market embarks on a rally, PEPE would be more likely to maintain its gains.

Investor interest is also critical, and PEPE is enjoying it aplenty. On Binance, only Bitcoin, BNB, and Ethereum had higher trading volumes over the past 24 hours. Overall, it ranks seventh.

These indicators have given some analysts confidence that PEPE can rise to become the largest meme coin in the space; one analyst says that a $30 billion market cap is on the lower scale.

However, technical indicators paint a different picture. The meme coin’s relative strength index (RSI)  and money flow index (MFI) point to an overbought coin, which usually precedes a dump as traders take profits.