Yesterday, Coinbase added PEPE, the popular frog-themed meme coin, to its spot market. The news immediately boosted PEPE’s price, which soared by 75% in just 24 hours.
Coinbase Listing Fuels PEPE Rally
Before the listing announcement, PEPE was trading at $0.000013. The rally started after Coinbase’s Chief Legal Officer, Paul Grewal, posted a cryptic teaser on X (formerly Twitter), saying:
Shortly after, Coinbase confirmed the listing with a frog emoji. Robinhood also decided to list PEPE around the same time, driving the token’s price to $0.000022. The sudden surge pushed the transaction volume in profit to $1.16 billion, indicating strong investor interest.
Profit-Taking Signals Possible Pullback
The sharp increase in PEPE’s price led many holders to take profits, causing a spike in selling pressure. While the profit-taking has slowed down, the Relative Strength Index (RSI) suggests that PEPE might see a short-term decline. The RSI, a momentum indicator, measures the speed of price movements. It ranges from 0 to 100 and often identifies overbought (above 70) or oversold (below 30) conditions.
Currently, PEPE’s RSI reading is well into the overbought zone, signaling a possible price correction. If the selling pressure continues, the token might pull back soon.
PEPE Price Prediction: Will It Correct or Continue Rallying?
On the daily chart, PEPE reached a new all-time high of $0.000023. Despite the rally, the overbought condition hints at a potential price drop. If this happens, PEPE’s price could fall to around $0.000019, where the 23.6% Fibonacci retracement level is positioned. If profit-taking increases, the decline could extend to $0.000015.
However, if buying momentum remains strong, the meme coin could continue its rally, targeting $0.000026.
Conclusion
While the Coinbase listing has given PEPE a massive boost, the overbought signals and rising selling pressure indicate a possible pullback. Investors should keep an eye on market sentiment and key indicators before making any decisions.