- Pepe has surged by over 300% in March.
- The meme coin remained deep in the overbought zone.
Over recent weeks, meme coins, particularly Pepe [PEPE], have experienced substantial increases. This surge has spurred increased activity among holders, resulting in a historic achievement for the meme coin.
Pepe goes deeper into the overbought zone
Examining Pepe on a daily time frame chart showed an intriguing trend. Analyzing the price range tool since the beginning of March, it was evident that the price has surged by over 300%.
As of the close of trading on the 8th of March, the asset exhibited another significant uptrend, increasing by over 32%. This continued a series of substantial daily double-digit increases that began in February.
At the time of this writing, the coin was trading with an over 1% increase, but it has reached an all-time high at around $0.000009.
Source: Trading View
The ongoing strong bull trend was further validated by the Relative Strength Index (RSI), which had first entered the overbought territory on the 25th of February. At press time, the RSI was approaching 90.
Volume and active addresses surge
In recent weeks, there has been a notable correlation between Pepe’s price and its trading volume, with both experiencing significant increases.
AMBCrypto’s analysis of Santiment’s chart showed that since late February, Pepe’s daily trading volume has consistently exceeded $2 billion.
The volume reached its peak at over $4 billion on the 5th of March, marking the second-highest volume in its history. At the time of this writing, the volume was over $3.3 billion.
The ongoing surge in both price and volume suggested a sustained aggressive buying trend among traders in recent weeks. Additionally, an examination of the 30-day daily active addresses indicated a rise in activity.
At the time of writing, the number of active addresses had surpassed 84,000, marking the highest volume observed in nearly a year. The last time such a simultaneous surge was witnessed was around May 2023.
Source: Santiment
No supply left out
With the surge in price, Pepe has now become a lucrative investment, which is evident from the substantial volume of supply in a profitable state.
An analysis of the supply in profit showed that, at the time of this writing, the total supply in profit was over 420.7 trillion, per CoinMarketCap data.
Thus, at press time, 100% of the total supply was in a profitable position.
AMBCrypto’s analysis of Santiment’s chart confirmed that the percentage of the total supply in profit was indeed 100% at the time of writing.
The last time when the entire total supply was in profit dated back to around May 2023. The 30-day Market Value to Realized Value ratio (MVRV) also provided insights into the press time level of profitability.
At the time of writing, the MVRV stood at over 118%.
Source: Santiment
Does the current stage present buying opportunities?
The current profitability level of PEPE is favorable for existing long-term holders, presenting a positive scenario. However, for new traders, it might not be the optimal time to buy.
This caution is based on the present state of its Relative Strength Index (RSI), where assets entering the overbought zone often precede a price drawback.
Realistic or not, here’s PEPE’s market cap in BTC’s terms
The RSI’s level of profitability exceeding 100 is typically an indication of a potential price drawback.
Therefore, new traders are advised to exercise caution and consider the historical patterns associated with RSI and profitability levels before making purchasing decisions at this juncture.
