NOIDA (CoinChapter.com) — A rise in the price of Bitcoin (BTC) has pushed trading in the major cryptocurrency near its highest level in 26 months. The resulting bullish sentiment sparked memcoin mania, which helped Pepecoin (PEPE) rally, nearly doubling the token’s price within 48 hours.
PEPE What is driving Memecoin mania?
Bitcoin price action generally impacts the broader cryptocurrency market due to the token’s dominance, which currently stands at nearly 52%, per CoinMarketCap data.
As more participants enter the market, small tokens like memecoins benefit as traders look to make immediate profits. Therefore, the memecoin craze has led to a resurgence of investor demand in the market, which has had a ripple effect of increasing the price of PEPE.
Moreover, social media hype also helped increase the price of Pepecoin. memecoin was one of the most searched tokens on CoinGecko on February 27th, highlighting the frenzy in PEPE coin’s recent rally.
Moreover, several cryptocurrency influencers also revealed the token and claimed:meme season“ has arrived. In the cryptocurrency market, this term refers to a period in the cryptocurrency market where altcoins (any cryptocurrency other than Bitcoin) significantly outperform Bitcoin in terms of price appreciation.
Memecoin mania helped PEPE surpass Shiba Inu’s SHIB token (worth $951 million) in terms of 24-hour trading volume. Additionally, Memecoin is closely followed by Dogecoin, with a trading volume of just under $1.1 billion at the time of this writing.
The PEPE price rally over the past 7 days has been riding the hype, recording the highest gain among memecoins over the past 7 days.
PEPE price rally enters overbought zone
Meanwhile, the rise in PEPE price due to the memecoin craze has pushed the token’s relative strength index into overbought territory, hitting 77.8 on the daily chart.
RSI is a momentum indicator that measures asset price movements to identify overbought or oversold conditions. Overbought RSI levels indicate the presence of strong bullishness in the market.
However, traders often view overbought RSI levels as bearish signals. This is because it usually precedes a bearish reversal or consolidation phase in the underlying token.
Therefore, the PEPE rally risks falling to support levels near $0.00000162. Additionally, a violation of the immediate support level could see Pepecoin price risk testing the 50-day EMA (purple wave) and 100-day EMA (blue wave) support confluence near $0.00000118.
The PEPE price rally led to a nearly 100% WTD bounce, reaching daily highs near $0.00000229 on February 27th. If the rally continues, PEPE price may reverse the immediate resistance near $0.00000241 before targeting resistance near $0.000003.