As Cointelegraph reported, Pepe’s trading volume has quadrupled over the past week, triggering a strong double-digit rally for the frog-themed meme coin.

As an Ethereum-based meme coin, Pepe has risen by more than 31% in the past week as the overall meme coin has recovered.

Currently, PEPE is trading at $0.00001076, reaching its highest value since August 3 and up 68% from the local low on September 6.

As PEPE’s price surged, trading activity also increased. On September 27, PEPE’s spot trading volume exceeded $1.3 billion, up 35% in the past 24 hours and 316% in the past seven days.

Its market cap has also moved back above $4 million, solidifying its position as the world’s third-largest memecoin.

On September 27, PEPE was also the most traded meme coin, surpassing Dogecoin with a trading volume of over $700 million.

Finally, after several weeks of sideways price action, PEPE appears to be regaining its footing.

Memecoins generally rise

PEPE’s rally on September 27 echoes bullish price action across the memecoin space. Most cryptocurrencies in the space have seen double-digit gains over the past week. Leading memecoins DOGE and Shiba Inu have risen 20.7% and 50% respectively over the past seven days.

Solana-based Dogwifhat has recorded a 31% gain over the past week, while Base’s Brett is up 28% over the same period.

Additionally, memecoin’s trading volume exceeded $8.5 billion in the past 24 hours alone. This recovery is due to investors once again embracing risk-on assets such as memecoin.

Data from Alternative shows that the Crypto Fear & Greed Index has entered the "greed" zone at 61, up from 30 a month ago, when the market was full of "fear."

PEPE breaks bear market mode

On September 20, PEPE’s price broke out of a descending parallel channel, sparking strong momentum that allowed it to flip the 50-, 100-, and 200-day exponential moving averages (EMAs) as support.

“The price of $PEPE has broken out of a descending channel,” noted analyst Cryptojack said in a Sept. 27 X post, adding, “I expect it to continue to rise.”

In the short term, the bulls are likely to continue the rally towards the main resistance level of $0.00001260.

The sharp rise in the RSI and its position at 73 in the overbought zone further reinforces the dominance of buyers in the market.

However, overbought conditions could lead to profit-taking, possibly resulting in a minor correction before PEPE continues its uptrend.

The most important support area is located above the channel’s upper border trendline, where all major EMAs are currently located.

Losing this support aggregation zone could trigger a bearish scenario with possible downside targets ranging between $0.00000668 and $0.00000596.