After a 97% increase from its August lows, the Pepe (PEPE) price can see a reversal.
After falling to around $0.000006 in August, PEPE than doubled its value on Sunday, edging closer to $0.000012.
The price of PEPE has broken sustainably back above its 50 and 200DMAs for the first time since May, thanks to the surge that broke a crucial short-term downtrend that has been in action since July.
Crypto assets rose sharply in the second half of September on widespread optimism about a possible relaxation of monetary policy by central banks across the world.
Meme currencies are also seeing a quickening of their upward speed. Some investors are speculating that Pepe is bringing back meme season.
Last week, from Thursday through Saturday, the price of PEPE surged by more than 30%.
PEPE Cost Evaluation
However, after reaching its highs over the weekend, the price of Pepe has fallen to below $0.000011.
Some worry this may signify the beginning of a negative reversal, as Pepe has just gotten overbought.
PEPE Price - Is It About to Fall?
The 14-day Relative Strength Index (RSI) for Pepe has firmly entered overbought area because to the remarkable price rise that has occurred in the last several weeks.
On Saturday, the Relative Strength Index (RSI) jumped to 77, meaning that assets are not overbought if they are over the 70 mark.
In the time after, it fell to just under 70. Pepe price decreases have occurred before RSI increases in the last several months.
PEPE Cost Evaluation
Meanwhile, according to CoinGlass, PEPE futures financing rates have remained high at about 0.010% virtually continuously since mid-September.
After reviewing the PEPE financing rate over the last three months, it seems that instances when the rate goes up and down are correlated with local price drops.
On the other side, local price peaks are often accompanied with financing rates that remain positively trending for at least a week.
This, together with the overbought RSI indicator, indicates that a correction may be imminent for the Pepe price.
Those on the downside may aim for a return to the price level slightly around $0.000010, which was the peak point in late August.
It is possible that the 50DMA at $0.0000080 and the 200DMA at $0.0000094 will be relevant.
PEPE Cost Evaluation
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However, buyers of meme coins may want to consider purchasing PEPE at any price drop in the near future.
There may be room for a robust recovery if US economic data this week—specifically, the ISM PMI surveys and US employment statistics on Friday—further allay concerns that the US is destined for a recession in 2025.
Rates are high compared to inflation, but the Federal Reserve is determined to ease them so that monetary policy does not become too restrictive, regardless of how the economy does.
The ideal "goldilocks" scenario for risk assets would be if the Federal Reserve were to cut interest rates while the US economy maintained its strong performance.
As a result, Bitcoin and other riskier cryptocurrencies, such as meme coins like Pepe, may do very well in the fourth quarter.