Since PEPE has been oversold for a few weeks, it is well-positioned to quickly make some significant gains.
In the last 24 hours, the price of Pepe Coin has increased by 2%, hitting $0.000007081 as the cryptocurrency market calms down following a challenging weekend.
Even though PEPE has dropped by 16% over the past 30 days and by 2.5% over the past week, the well-known meme coin has still increased by 800% over the past year.
And because of its recent declines, it is now in a position where it can start testing its resistance levels and see gains of 10% or even 25% over the course of the next month or two.
Pepe Coin Price Flashes Huge 25% Buy Signal – Is a Massive Rally Next?
Since Saturday, when it hit a seven-day low of $0.00000644, PEPE has been gradually increasing in value.
Even though its indicators show this strength increase, there is still room for more gains in the near future.
For example, its relative strength index (purple) increased dramatically from approximately 25 at the beginning of the weekend to approximately 65 today.
Along with PEPE’s 30-period moving average (orange), which is now approaching the 200-period average (blue), this indicates increasing buying pressure.
We might also witness a breakout if it breaks above the longer term average and creates a golden cross.
Its indicators indicate that it could reach $0.000008 or $0.000009 in the coming weeks because it is currently rising from a low base.
This would imply increases of about 12% and 25%, respectively, which is reasonable given that Pepe Coin hit its all-time high (ATH) earlier than the majority of other top-100 tokens.
Someone created a new wallet and withdrew 292.97B $PEPE($2.17M) and 273,267 $WLD($391K) from #Binance in the past 20 minutes.https://t.co/6fN9VpX6TX pic.twitter.com/1vvsjxP4oQ
— Lookonchain (@lookonchain) September 2, 2024
Interestingly, whales seem to have started saving PEPE again this month, even though the coin fell sharply at the end of August.
This would suggest an expectation of incoming rises, and while September has historically been a bad month for crypto, we may see prices rise again as we get closer to October (which is generally one of the best for returns).
Historically speaking, September is #Bitcoin's worst month.
— Daan Crypto Trades (@DaanCrypto) September 5, 2024
The average return is -4.36% in the past 12 years. That's about what it was trading at today.
People seem to be preparing for an absolute -50% destruction of a month. It's never that extreme. pic.twitter.com/TeTzXkeLJW
In light of all of this, PEPE might experience a brief increase before faltering once more, but as September draws to a close, it might start to show more steady gains.
The Fed’s anticipated rate cuts will aid in this, but some analysts have cautioned that if the central bank cuts rates too quickly, bearish sentiment may rise (since this might signal recession fears).