- Summary:
- Meme coins have surged this week, with PEPE at the helm of it. But PEPE coin price history warns us of a potential underlying risk.
Frog-themed meme coin PEPE saw its price extend its upward trajectory on Thursday, driven by overall bullish crypto market sentiment. PEPEUSD was at +7.6 percent and traded at 0.00000910 on the daily chart at the time of writing, its highest level in the last month.
The global cryptocurrency market has been on an upbeat momentum in the last two weeks, with the market capitalisation crossing the $2.25 trillion mark. PEPE coin price has gained 20 percent in the last week, outperforming Bitcoin’s 4.2 percent gains during that period.
Meme coins soaring but momentum carries risk
Meme coins have once more shown stronger propulsion than other altcoins and Bitcoin, signaling a high risk appetite among investors. The top three meme coins, Dogecoin, Shiba Inu, PEPE and DogWifHat have risen by 9.1 percent, 25 percent, 20 percent and 38 percent respectively in the last week. On the other hand, Ethereum, BNB, Solana and XRP have gained 10 percent, 6 percent, 13 percent, and 0.6 percent during that period.
The high returns realised from meme coin trading is a result of their comparatively higher levels of volatility, which is a key attraction about cryptocurrencies as investment assets. The Average Directional Index (ADX) indicator reading on PEPE coin price 2-hour chart is at 30.76, signaling a strong upward momentum.
However, PEPE rarely stays on top beyond three successive weeks, and the last time it did that was four months ago. Therefore, barring a market-wide rally led by Bitcoin, the meme coin could be facing the prospect of a correction heading into the weekend.
ADX indicator on PEPE 2-hour chart
PEPE coin price prediction
PEPE coin price has a bullish momentum with the pivot at 0.00000900. That will likely be met with opposition at the 0.00000918. However, a stronger upward push could break above that level to test 0.000000935.
On the other hand, a move below 0.00000900 will favour the sellers, with initial support likely to come at 0.00000877. However, extended bearishness could break that mark below, invalidating the upside narrative and potentially taking the price lower to test 0.00000860.
