Pepe, the meme coin, has been on a tear this month, surging over 300% in March. This wild ride has left many wondering: should you jump in and buy some Pepe, or wait for a better opportunity?
Pepe's Meteoric Rise
Looking at a daily chart, it's clear Pepe has been on a rocket ship. Since the beginning of March, the price has skyrocketed over 300%. As of March 8th, it closed with another significant jump, exceeding 32%. This follows a trend of substantial daily double-digit increases that began in February.
Overbought Territory
While the price keeps climbing, a technical indicator called the Relative Strength Index (RSI) suggests Pepe might be overheating. The RSI measures price momentum, and when it reaches overbought territory (around 90), it can signal a potential price correction. Currently, Pepe's RSI is nearing 90, indicating it might be due for a pullback.
Trading Frenzy
Pepe's price surge is accompanied by a frenzy in trading activity. Daily trading volume has consistently surpassed $2 billion since late February, even reaching a peak of over $4 billion on March 5th. This surge suggests a strong buying appetite from traders.
Active Users on the Rise
The excitement surrounding Pepe isn't limited to professional traders. The number of daily active addresses, representing individual users interacting with the coin, has also spiked. Currently, it's at its highest level in nearly a year, exceeding 84,000. This indicates a broader interest in Pepe.
Everyone's in Profit
With the price soaring, Pepe has become a very profitable investment. Currently, 100% of the total supply is in profit, meaning anyone who bought Pepe earlier is now sitting on gains. This is a very bullish sign for existing holders.
Should You Buy Now?
While the current situation is great for those who already own Pepe, it might not be the best time for new investors to jump in. The high RSI and overbought territory suggest a potential price correction on the horizon. It might be wiser to wait for a pullback before buying Pepe.
Conclusion
Pepe's recent surge has been impressive, but the market might be due for a breather. If you're a new investor, waiting for a potential price correction before buying Pepe could be a wise strategy. However, for existing holders, the current situation is quite favorable.