Yesterday, November 13, cryptocurrency exchange Coinbase listed the frog-themed Meme Coin Pepe (PEPE) on its spot market. Immediately after the announcement, the price jumped and is now up 75% in the past 24 hours.
While PEPE’s Coinbase listing appears to be a promising development for token holders, this on-chain analysis suggests that the price may soon give up some of its recent gains.
Pepe Holder Exits After Price Increase
During the early hours of trading yesterday, PEPE was priced at around $0.000013. However, a mysterious post on the X platform by Coinbase Chief Legal Officer Paul Grewal revealed that the exchange would be listing the Meme Coin coin.
“You’ve been wanting the frog for a long time. Well, you’ll get it soon. Coinbase is adding PEPE to our listing roadmap with a target listing date of later today. Thank you for your patience,” Grewal wrote.
Coinbase also confirmed the listing with the frog emoji at the same time, and as expected, it was officially listed on the exchange later that day. Interestingly, this announcement also coincided with Robinhood's decision to list the Meme Coin, which ultimately pushed the PEPE price to $0.000022.
Furthermore, the increase in PEPE price has pushed the trading volume of profits to $53.14 trillion, worth $1.16 billion. From a price perspective, the increase in this indicator indicates selling pressure. Therefore, it is likely that this token will experience a short-term decline.
Pepe on-chain volume in profits. Source: Santiment
Although profit-taking has abated at this point, the Relative Strength Index (RSI) suggests that PEPE may still experience a short-term decline. The RSI is a momentum oscillator used to gauge the speed and strength of a cryptocurrency’s recent price movements. It fluctuates between 0 and 100, typically identifying overbought or oversold conditions.
When the RSI is above 70, it shows that the asset may be overvalued and may need a price correction. On the other hand, if it is below 30, it shows that the asset may have room for a price recovery.
As shown in the image below, the listing of PEPE on Coinbase has pushed the indicators far above the overbought point. Therefore, it is very likely that the price of PEPE will fall again.
Pepe's Relative Strength Index. Source: TradingView
PEPE Price Prediction: Downside Risk Ahead
On the daily chart, the Token has reached an all-time high of $0.000023. While there does not appear to be any resistance at the above levels, overbought conditions suggest that the Token may correct.
If that happens, PEPE could drop to $0.000019, where the 23.6% Fibonacci retracement level comes in. Alternatively, if profit-taking following this Coinbase listing of PEPE becomes more intense, the drop could go as low as $0.000015.
Pepe's Daily Analysis. Source: TradingView
On the other hand, if buying pressure continues to increase, that may not happen. In that scenario, Meme Coin could rise to $0.000026.
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