From CryptoPotato · By Dimitar Dzhondzhorov
The frog-themed meme coin has defied the latest market correction, pumping double digits today (October 23) and reaching a monthly high.
Some analysts believe the price could rise further in the short term, but key factors suggest the move hasn’t been healthy and might be followed by a pullback.
The Bullish Perspective
PEPE is one of the top-performing cryptocurrencies today and currently trades near $0.000005076. Its market capitalization has surged past $2.13 billion, making it the 50th-largest cryptocurrency and, once again, the fourth-biggest meme coin. Recall that yesterday (October 22), MemeCore (M) briefly took that position after posting a significant price increase.
PEPE Price, Source: CoinGecko
According to Token Talk, PEPE’s bulls have “one job right now”: push the token’s market cap above $2.21 billion. “The daily structure has improved massively from the summer lows, but resistance is resistance until proven otherwise,” the analyst added.
X user Sjuul | AltCryptoGems also issued a bullish thesis, saying he still likes the PEPE chart, which is showing signs of “relative strength.” He believes buyers must now hold that flipped support/resistance level to trigger an additional potential pump.
For his part, Crypto With Gopal claimed that PEPE has flashed an inverted head-and-shoulders reversal, with price pushing toward the $0.0000050-$0.0000053 neckline zone. He said a confirmed breakout could trigger a powerful recovery move and argued that bullish momentum has been building.
Remain Cautious
Despite the impressive uptick, PEPE remains a meme coin, making it especially vulnerable to speculation and volatility, so a short-term correction wouldn’t be a surprise.
The token’s Relative Strength Index (RSI) supports that scenario. The technical analysis tool runs from 0 to 100, where anything above 70 means that PEPE has entered overbought territory and could be headed for a pullback. Conversely, readings below 30 are typically seen as buying opportunities. Recently, the ratio exploded to 94.
PEPE RSI, Source: RSI Hunter
PEPE’s exchange netflow is also worth monitoring. Inflows have dominated outflows lately, suggesting investors have shifted from self-custody to centralized platforms, increasing immediate selling pressure.
PEPE Exchange Netflow, Source: CoinGlass
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