On November 13, cryptocurrency exchange Coinbase listed the frog-inspired meme coin Pepe (PEPE) on its spot market. Moments after the announcement, the price jumped and has increased by 75% in the last 24 hours.
While the listing of Baby on Coinbase seems like a promising development for holders of the coin, these on-chain analyses suggest that the price may soon lose some of its recent gains.
Investors profit after rally
During early trading hours yesterday, Baby was trading at around $0.000013. However, a cryptic post on X by Coinbase’s CCO Paul Grewal revealed that the platform will list the meme coin.
“You’ve been waiting for the frog. Well, you’ll get the frog soon. Coinbase is adding Baby to our listing map with the goal of listing later today. Thanks for your patience,” Grewal wrote here.
Coinbase also confirmed the listing of the frog emoji around the same time, and as expected, it was officially listed on the platform later that day. Interestingly, the announcement also coincided with Robinhood’s decision to list the meme coin, pushing the price of Baby to $0.000022.
Moreover, the PEPE price surge pushed the profitable trading volume to $53.14 trillion, worth $1.16 billion. From a price perspective, the rise in this metric indicates selling pressure. Therefore, the token is likely to face a decline in the short term.
While profit taking has declined as of this writing, the Relative Strength Index (RSI) suggests that PEPE price could see a short-term pullback. 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, and typically identifies overbought or oversold conditions.
When the RSI is above 70, it indicates that the asset may be overvalued and may be due for a price correction. On the other hand, if it is below 30, it indicates that the asset may be ready for a potential price rebound.
As shown in the image below, the listing of PEPE on Coinbase has pushed the indicator readings well above the overbought threshold. Therefore, PEPE price is likely to decline.
PEPE Price Prediction: Possible Drop Coming
On the daily chart, the token has reached a new all-time high of $0.000023. While there appears to be no resistance at the upper levels, the overbought condition suggests that the token could pull back.
If this happens, PEPE price could drop to $0.000019, where the 23.6% Fibonacci retracement indicator is located. Also, if profit-taking increases after this Coinbase listing of PEPE, the drop could reach $0.000015.
On the other hand, if the buying pressure continues to increase, this may not happen. In this scenario, the meme coin may rise to $0.000026.
