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The market rise brought significant gains for many altcoins, but as in previous times, memecoin projects are leading this charge, with Pepe at the forefront today. The frog-themed memecoin is trading at $0.000011 at the time of writing, representing a 20.13% increase in the last 24 hours.
What’s Happening with PEPE?
According to blockchain data analysis firm Santiment, the price-DAA divergence is one of the reasons for PEPE’s price increase. DAA stands for Daily Active Addresses and measures unique user interaction with a cryptocurrency. As seen below, the price-DAA divergence for PEPE was negative during the downtrend. This means participation was low as the price fell. However, things changed when PEPE’s price started moving upwards on July 11.
Typically, higher prices attract more market participants to buy crypto. Therefore, the 64.29% rise proves that as active addresses increase, participants are more inclined to value and buy the memecoin project more.
PEPE Chart Analysis
The daily PEPE/USD chart shows that the bullish momentum continues to increase, as indicated by the Relative Strength Index (RSI). By definition, the RSI measures momentum by gauging the size and speed of price changes. Investors also use this technical tool to detect overbought or oversold conditions. If the reading increases, momentum is on the rise, but if the cryptocurrency reaches 70.00 or above, it is considered overbought. Conversely, a decrease in the RSI reading indicates bearish momentum. Similarly, a reading of 30.00 or below signifies oversold conditions.
As previously mentioned, the RSI at 60.10 indicates that the momentum of the memecoin project is on the rise. If this continues, it could lead to higher prices identified by the Fibonacci retracement indicator. This indicator provides information on potential levels where the price might reach or reverse.
Also important are the 0.236, 0.382, 0.618, and 0.786 Fibonacci levels. According to the chart above, if buying pressure increases, PEPE’s next target could retest $0.000012 and potentially rise to $0.000014. However, if investors decide to take profits from the recent increases, the memecoin price could fall back to $0.000010.
