The recent market bounce has led to significant gains for many altcoins, especially meme coins like Pepe (PEPE), which is currently trading at $0.000011 with a 20.13% increase in the last 24 hours. This surge in price can be attributed to increased user interaction with the cryptocurrency, as measured by Daily Active Addresses (DAA). The price-DAA divergence, which was negative during PEPE’s downtrend, turned positive on July 11, leading to a rise in prices.
The rise in buying pressure is also evident in the volume, which reached close to $2 billion for the first time in almost two months. In the world of crypto, volume reflects the value traded over a specific period, indicating the level of participation in trading. A sustained increase in volume usually signals an uptrend, while a decline could hint at a potential reversal. In the case of PEPE, the rising volume suggests that the upward trend is likely to continue.
Looking at the technical analysis, the Relative Strength Index (RSI) for PEPE indicates bullish momentum with a reading of 60.10. The RSI measures momentum by analyzing the size and speed of price changes, and traders use it to identify overbought or oversold conditions. With the RSI in a bullish range, the meme coin could target levels indicated by the Fibonacci retracement indicator, such as $0.000012 and potentially $0.000014 with increased buying pressure.
Investors are closely watching the Fibonacci levels, including the 0.236, 0.382, 0.618, and 0.786 points, to gauge the potential price movements for PEPE. If buying pressure continues to rise, the next target for the meme coin could be $0.000012, with further gains possible if the momentum is sustained. However, profit booking by traders could lead to a price reversal back to $0.000010. Overall, the current market conditions suggest a positive outlook for Pepe (PEPE) in the near term.
In conclusion, the recent surge in meme coins like Pepe (PEPE) is driven by increased user interaction, rising volume, and bullish momentum indicated by technical analysis. The price-DAA divergence, along with the Fibonacci retracement levels, suggests potential targets for the meme coin in the coming days. Traders should monitor the RSI and volume closely to gauge market sentiment and make informed decisions regarding their investments in PEPE. With a positive market outlook and strong buying pressure, Pepe (PEPE) could continue its upward trajectory in the short term.
