Crypto: PEPE takes off 100% in one month, but how far will this memecoin go?

The PEPE crypto price has more than doubled over the past month, reaching all-time highs. However, several indicators suggest that a price correction could be imminent.

Pepecoin’s meteoric rally

Over the past 30 days, the price of PEPE has surged more than 100%, propelling the cryptocurrency to new record highs. According to data from CoinMarketCap, PEPE was trading at $0.00001419 at the time of writing, boasting a market capitalization of over $5.97 billion.

This soaring prices allowed 97% of PEPE holders to make profits, according to IntoTheBlock. Additionally, bullish sentiment around memecoin has strengthened, as evidenced by its increased social volume and weighted sentiment, according to Santiment.

Meanwhile, a whale has removed over 500 billion PEPE from the Binance exchange, as Lookonchain highlighted in a recent tweet. This illustrates the strong buying pressure currently being exerted on PEPE.

Will PEPE’s bullish rally last?

Despite the ambient euphoria, several indicators suggest an exhaustion of PEPE's bullish rally. Indeed, Santiment data reveals an increase in the supply of PEPE on exchanges, while the supply outside exchanges decreases. This suggests that some investors are starting to sell their holdings.

In addition, after a phase of growth, the supply of PEPE held by the largest addresses has declined slightly in recent days. An analysis of PEPE's daily chart also shows a decline in its Chaikin Money Flow (CMF), while the MFI and RSI are in the overbought zone.

All of these elements indicate that a price correction could be on the horizon. If it is confirmed, the price of PEPE could initially fall towards $0.0000122. At this level, a rebound and the start of a new bullish rally are possible. However, a fall below this threshold could lead this crypto towards $0.000010.

Despite PEPE's impressive rally over the past few weeks, selling pressure appears to be increasing on the memecoin. Although a continuation of the rise cannot be ruled out, investors must remain vigilant in the face of the increasing signals of reversal.