PEPE Price Analysis: Overbought Signals Could Trigger Drop After 97% Surge
Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...
The Pepe (PEPE) price risks a correction in the wake of its 97% rally from the August lows.
PEPE came within a whisker of hitting $0.000012 on Sunday, a roughly 2x rally from the sub-$0.000006 August lows.
The PEPE rally broke a key short-term downtrend that has been in play since July and has seen its price burst sustainably back above its 50 and 200DMAs for the first time since May.
The impressive rally came as optimism about global central bank easing ramped up in the second half of September, lifting crypto assets across the board.
There is also an acceleration of upside momentum in meme coins. Pepe has some investors talking about the return of meme season.
The PEPE price rallied over 30% in three days from Thursday to Saturday last week.
But the Pepe price has now dropped nearly 10% from its weekend highs to below $0.000011.
Some fear this could start a bearish reversal, with signals suggesting Pepe has become overbought.
The stunning rally in the Pepe price in the past few weeks has pushed its 14-day Relative Strength Index (RSI) firmly into overbought territory.
The RSI rose to 77 on Saturday, above the 70 threshold used to assess whether an asset is overbought.
It has since declined to just under 70. But in the last few months, jumps in the RSI have come ahead of Pepe price declines.
PEPE futures funding rates, meanwhile, have been elevated around 0.010% almost nonstop since mid-September, per CoinGlass.
A look at the PEPE funding rate over the last three months suggests that periods of time when the funding rate
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