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Pepe Coin (PEPE), a popular Ethereum-based meme coin, continues its bullish rally amid positive sentiment on the broader market. Despite this momentum, PEPE is showing signs of a potential short-term reversal, as the Relative Strength Index (RSI) suggested.
What RSI reveals
The Relative Strength Index is a momentum indicator often used to determine short-term reversal points at the end of each rally. It measures the degree of recent price changes to analyze whether a digital asset is overbought or oversold.
In the current PEPE case, the meme coin has an RSI reading 87.7, indicating an overbought condition. Generally, an RSI reading of 70 or above indicates an overbought condition, while a reading of 30 or below shows an oversold condition.
An overbought situation usually indicates a potential price reversal. However, as other bullish trends indicate, the reversal may only last a short while for PEPE. For instance, the 24-hour trading volume increased by 366.84% to $22.29 billion. This huge spike suggests rising activity, which could fuel more price rallies if sustained.
The recent momentum has pushed PEPE to trade as the 15th-largest digital asset by market capitalization, valued at $8.8 billion. This value only comes slightly below SUI’s market cap of $9.3 billion. Meanwhile, PEPE’s price has increased by 57.64% in the last 24 hours to $0.00002133.
PEPE seeing increasing acceptance
In a recent development, Robinhood Crypto Europe launched live transfer options for PEPE, expanding the meme coin’s functionality.
This feature lets European users withdraw and deposit PEPE directly on Robinhood's crypto platform. A 1% deposit bonus is also available temporarily to encourage customers to participate in PEPE transactions.
In another update, Chief Legal Officer Paul Grewal confirmed that PEPE is set to go live on Coinbase. This announcement has helped reinforce investors' confidence in PEPE and likely contributed to its latest rally.