The Ethereum-based memecoin Pepe (PEPE) has surged more than 31% in the past week, riding the wave of a broader memecoin sector recovery. Currently trading at $0.00001076, PEPE reached its highest value since August 3, marking a significant 68% rebound from its local low on September 6. This bullish momentum has also fueled a rise in trading activity, with PEPE’s spot trading volume surpassing $1.3 billion on September 27, representing a 35% increase in just 24 hours and an impressive 316% rise over the past week.
PEPE’s market capitalization has also reclaimed the $4 million mark, solidifying its position as the third-largest memecoin in the world. On September 27, it became the most traded memecoin, outpacing Dogecoin (DOGE) by more than $700 million in volume. After weeks of sideways price movement, PEPE appears to have regained its footing, signaling renewed investor interest.
Memecoins Flash Green Across the Board
PEPE’s rally comes as part of a larger memecoin sector recovery, with most cryptocurrencies in this niche posting double-digit gains over the past week. Leading the charge is Dogecoin (DOGE), up 20.7%, and Shiba Inu (SHIB), which has seen a staggering 50% rise. Other notable performers include Solana-based Dogwifhat (WIF), with a 31% weekly gain, and Base’s Brett (BRETT), which climbed 28%. Over the past 24 hours, memecoin trading volume surpassed $8.5 billion, reflecting a surge in demand as investors once again embrace risk-on assets like memecoins.
A shift in market sentiment is also evident. According to Alternative’s Crypto Fear & Greed Index, which tracks investor sentiment, the market has moved into the “greed” zone, with a score of 61, up from 30 just a month ago when the market was gripped by fear. This optimism is fueling the resurgence of memecoins like PEPE.
PEPE Breaks Out of Bearish Pattern
On September 20, PEPE’s price broke out of a descending parallel channel, marking a key technical shift that sparked the current rally. This breakout allowed PEPE to flip major exponential moving averages (EMAs) — the 50-day, 100-day, and 200-day — into support levels. Popular crypto analyst Cryptojack highlighted this move in a recent post, stating, “The price of $PEPE broke out of the descending channel. I expect it to continue pumping.”
In the short term, PEPE bulls are eyeing a continuation of the upward trend, with the next major resistance level at $0.00001260. The relative strength index (RSI) has surged to 73, firmly in the overbought region, reinforcing buyer dominance. However, this overbought condition could lead to short-term profit-taking, potentially causing a slight pullback before PEPE resumes its upward trajectory.
The most crucial support zone lies just above the upper boundary of the channel, where the major EMAs converge. If PEPE loses this support level, it could trigger a bearish scenario, with downside targets between $0.00000668 and $0.00000596.
Investor Sentiment Turns Bullish
As PEPE continues to climb, the broader memecoin market is flashing green, reflecting growing confidence among investors. With the Crypto Fear & Greed Index firmly in the “greed” zone, the market’s appetite for risk is on the rise. While short-term corrections may occur, PEPE’s breakout and renewed momentum suggest that this memecoin is not done rallying yet. Whether it can sustain this upward trajectory remains to be seen, but for now, PEPE’s comeback has captured the attention of the crypto world.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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