Pepe price gets extremely overbought: is a reversal coming?

By: bitcoin ethereum news|2025/05/12 17:00:13
0
Share
copy
Pepe Coin price continued its strong rally on Monday, reaching its highest level since January. Pepe (PEPE), the third-biggest meme coin after Dogecoin (DOGE) and Shiba Inu (SHIB), jumped to a high of $0.00001535, up 180% from its lowest level this year. The rally occurred as its 24-hour trading volume surged to over $3.2 billion, higher than the combined volumes of Shiba Inu, Official Trump, and Bonk. It also rose as demand in the futures market gained momentum, with open interest hitting a record high of over $662 million. This marks a significant increase from the March low of $165 million, when Pepe was in a prolonged sell-off. Pepe’s rally accelerated after last week’s Ethereum (ETH) breakout, which pushed ETH to $2,500 from last month’s low of $1,387. In most cases, ERC-20 tokens perform well when Ethereum is in a strong uptrend. Like other cryptocurrencies, Pepe is being buoyed by renewed trade optimism after the US and China agreed to lower tariffs. The 145% tariff on Chinese imports will drop to 30%, while the 125% levy on US goods will be reduced to 10%. The two countries have agreed to continue negotiations aimed at improving bilateral relations. A potential trade deal between the United States and China, and between the US and United Kingdom, opens the door for broader global trade deals. This has raised investor optimism that US inflation will ease, increasing the likelihood of Federal Reserve interest rate cuts. Pepe price prediction The ongoing Pepe Coin price surge is in line with what crypto.news predicted several times, including here , here , and here . These forecasts focused on the large falling wedge pattern that had formed on the daily chart. This pattern, defined by two descending and converging trendlines, typically signals a bullish breakout. Pepe also formed a double-bottom pattern around the $0.0000057 level and has now moved above the neckline at $0.000009212. This double-bottom is a widely recognized bullish reversal formation. However, one risk is that Pepe has become significantly overbought, with the Relative Strength Index rising to 84. Historically, such conditions often lead to brief pullbacks as investors take profits. If this reversal happens, the next key level to watch will be at $0.000009212, the neckline of the double-bottom pattern, roughly 35% below the current price. A decline to this level would still be considered bullish, forming part of a ‘break-and-retest’ setup, which is a common continuation pattern. Source: https://crypto.news/pepe-price-gets-extremely-overbought-is-a-reversal-coming/

You may also like

Strategy Founder: The Next 10 Years of Bitcoin

In the next decade, the biggest evolution of Bitcoin is precisely "responding to change with invariance." The four-year cycle is giving way to capital flows such as ETFs, corporate and sovereign reserves, and bank credit, while digital credit and digital currency will grow layer upon layer on top of...

Forbes Special Report: Stablecoin cross-border payments are faster now, but not cheaper yet

Cross-border payments using stablecoins are rapidly expanding, bringing speed and accessibility, but due to insufficient institutional liquidity, they have not yet delivered on their promised cost savings. The technology has been validated, and regulations are improving, but the industry has not yet...

Li Feifei's latest long article: When video generation, robots, and NVIDIA all claim to be world models, we need a taxonomy

Language gives machines a way to talk about the world. The world model is the means by which machines ultimately understand, imagine, reason, and interact with it.

Blaming the desolation of the cryptocurrency world on the rise of AI is a form of intellectual laziness

The emergence of giants signifies a mature business model. Although it will reduce speculative space, there is also enough room for error, allowing for the continuous emergence of new forces.

The impact of OUSD on Circle, Tether, and Paxos: not a single negative factor, but a more complex reshaping of competition

OUSD will not be the last new competitor; Circle needs to respond more actively in terms of products, distribution, and ecosystem collaboration.

A valuation of 8 billion dollars, doubling in 8 months! What makes the crypto-friendly bank Erebor Bank stand out?

Erebor is a high-profile experiment taking place at the intersection of banking, cryptocurrency, and industrial policy.

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com