PEPE weakens after a 97% rally with a 10% pullback.
Overbought RSI and high funding rates signal potential correction.
The bears eye price drops to $0.0000094 or lower support levels.
After a breathtaking 97% rally from August lows, Pepe (PEPE) has begun to show signs of fatigue. Over the weekend, this popular meme coin nearly touched $0.000012, doubling from its August low.
However, the rapid rise has now given way to a nearly 10% pullback, leaving some investors wary. PEPE’s recent surge mirrors growing optimism about global central bank easing, but traders are starting to worry the coin may be overbought.
Overbought Signals Emerge
PEPE’s 14-day Relative Strength Index (RSI) surged above 77 on Saturday, pushing the price into overbought territory. While the RSI has now dipped slightly below 70, these recent spikes have been followed by price drops.
This pattern could spell trouble for PEPE holders. Adding to concerns, PEPE’s futures funding rates have stayed elevated since mid-September, a sign that could mark the top of the rally.
History shows that high funding rates usually precede local price tops in PEPE. Investors now worry that the combination of an overbought RSI and persistent funding rates could spark a broader correction.
Bears are eyeing a potential price drop to $0.000010, with even deeper retracements down to $0.0000094. If momentum continues to weaken, the next support is at $0.0000080.
Is This a Buying Opportunity?
For meme coin enthusiasts, the potential dip in PEPE’s price might offer an attractive buying opportunity. The broader economic landscape is key here.
If upcoming US economic data eases recession fears, the Federal Reserve could move toward interest rate cuts. This “goldilocks” scenario—where rates fall while the economy remains strong—could fuel a resurgence in risk assets, including cryptocurrencies like PEPE.
A favorable macroeconomic environment, combined with rising optimism, could reignite interest in PEPE. However, traders should remain cautious in the near term with overbought signals flashing.
The post PEPE Shows Signs of Weakness Following a 97% Rally appeared first on Crypto News Land.
