Pepe (PEPE), an Ethereum-based memecoin, has surged more than 31% over the past week as the entire memecoin market recovers. Currently trading at $0.00001076, PEPE has reached its highest value since August 3, marking a 68% increase from its local bottom on September 6.

Trading activity has also surged alongside PEPE’s rise in value. PEPE’s spot trading volume surpassed $1.3 billion on September 27, up 35% in the past 24 hours and 316% in the past seven days.

Its market capitalization has also returned to $4 million, cementing its position as the world's third-largest memecoin.

Additionally, PEPE was the most traded memecoin on September 27, surpassing DOGE by more than $700 million in volume.

Finally, after several weeks of sideways movement, PEPE seems to be gaining momentum again.

Memecoin Shines Everywhere

PEPE’s price surge on September 27 reflects the bullish trend across the entire memecoin segment. Most cryptocurrencies in the segment have recorded double-digit gains over the past week.

DOGE and Shiba Inu (SHIB), the two leading memecoins, have increased by 20.7% and 50% respectively in the past seven days.

Dogwifhat (WIF) on the Solana platform has recorded a 31% weekly gain, while Base's Brett (BRETT) has gained 28% over the same period.

The widespread rally has pushed the total memecoin market cap to $53.7 billion, up 34.5% over the past week, according to data from CoinMarketCap.

Furthermore, memecoin trading volume in the past 24 hours also reached over $8.5 billion. The recovery is fueled by investors once again taking risks with assets like memecoin.

Data from Alternative, a platform that analyzes “emotions and sentiment” around cryptocurrencies, shows a shift in market sentiment as the Crypto Fear & Greed Index has entered the “greed” zone at 61, up from 30 a month ago when the market was filled with fear.

PEPE breaks bearish pattern

On September 20, PEPE price broke out of a descending parallel channel, marking a strong move as it flipped the 50-day, 100-day, and 200-day exponential moving averages (EMAs) to become support.

“$PEPE price broke the falling channel,” stated popular analyst Cryptojack in a September 27 post on X, adding, “I expect it to continue rising strongly.”

In the short term, the bulls are likely to sustain the recovery towards the major resistance at $0.00001260.

The sharp rise in the relative strength index and its position at 73 in the overbought zone reinforces the dominance of buyers in the market.

However, overbought conditions could prompt profit taking, causing a minor correction before PEPE resumes its uptrend.

The most important support area is located just above the upper resistance of the channel, where all the major EMAs are currently located.

Losing this support could trigger a bearish scenario, with potential drop levels between $0.00000668 and $0.00000596.