On Wednesday (13) the Coinbase exchange listed the memecoin Pepe (PEPE) on its spot market. Moments after the announcement, the price jumped and has now increased 75% in the last 24 hours.
While PEPE’s listing on Coinbase appears to be a promising development for holders of the token, this on-chain analysis suggests that the price may soon lose some of its recent gains.
Pepe holders take profits after rally
In the early hours of trading yesterday (13), PEPE’s price was around $0.000013. However, a cryptic post on X by Coinbase’s Chief Legal Officer, Paul Grewal, revealed that the exchange would be listing the meme coin.
You’ve wanted the frog for a long time. Well, soon you’ll have the frog. Coinbase is adding PEPE to our listing roadmap with the goal of listing it later today. Thank you for your patience, Grewal wrote.
Coinbase also confirmed the listing with a frog emoji around the same time, and as expected, it was officially listed on the exchange later that day. Interestingly, the announcement also coincided with Robinhood’s decision to list the meme coin, which eventually drove PEPE’s price up to $0.000022.
Furthermore, the price surge pushed the trading volume in profit to reach $53.14 trillion, which is valued at $1.16 billion. From a price perspective, an increase in this metric indicates selling pressure. Therefore, the token is likely to see a decline in value in the short term.
Pepe's On-Chain Volume in Profit. Source: Santiment
While profit-taking has slowed to date, the Relative Strength Index (RSI) suggests that PEPE could still see a brief dip. The RSI is a momentum oscillator used to assess the speed and magnitude of a cryptocurrency’s recent price movements. It oscillates between 0 and 100, typically identifying overbought or oversold conditions.
When the RSI is above 70, it suggests that the asset may be overvalued and could be due for a price correction. On the other hand, if it is below 30, it suggests that the asset could be on the verge of a possible price rebound.
Pepe's Relative Strength Index. Source: TradingView
Read more: Coinbase: How the largest US exchange is adapting to the global regulatory landscape
PEPE Price Prediction: Possible Drop Ahead?
On the daily chart, the token reached a new all-time high of $0.000023. While there doesn’t seem to be any resistance at the upper levels, the overbought condition suggests that the token could pull back.
If this happens, the memecoin’s price could drop to $0.000019, where the 23.6% Fibonacci retracement indicator is positioned. Furthermore, if profit-taking following this Coinbase listing intensifies, the decline could be as low as $0.000015.
Pepe's Daily Analysis. Source: TradingView
On the other hand, if buying pressure continues to increase, this may not happen. In this scenario, the memecoin could appreciate to $0.000026.
The article PEPE returns to Coinbase and shoots up 75% was first seen on BeInCrypto Brasil.
