Pepe (PEPE) Gains 11%: Is a Rally Next or a Correction?

Pepe Bounces Back: What Driven the Frog Coin's 11% Surge?

On October 23, the frog-themed meme coin Pepe (PEPE) defied a broader crypto market pullback by posting an 11% daily gain. This surge pushed the token to a new monthly high.

PEPE currently trades near $0.000005076, with its total market capitalization surging past $2.13 billion. This market valuation makes PEPE the 50th-largest cryptocurrency overall and restores its position as the fourth-biggest meme coin.

Just one day prior, on October 22, rival token MemeCore (M) briefly claimed that fourth-place spot after a major price jump before PEPE reclaimed its rank.

Past performance of digital assets is not an indication of future results. You can monitor live asset metrics on platforms like bitkub.com/th/market/PEPE.

The Bullish Case: What Analysts Are Watching

Several crypto analysts have highlighted positive technical signals on PEPE's price chart, though further upward movement depends on sustained trading volume and broader market conditions.

According to analysis from Token Talk, PEPE's daily chart structure has improved significantly since its summer lows. The analyst noted that bulls now face one main objective: pushing the token's market cap above $2.21 billion. However, Token Talk added that resistance remains resistance until proven otherwise.

Crypto commentator Sjuul from AltCryptoGems also shared a favorable view, noting that PEPE's chart is showing clear relative strength. He stressed that buyers need to hold the flipped support and resistance level to trigger any potential continuation.

In addition, analyst Crypto With Gopal pointed out an inverted head-and-shoulders pattern forming on the chart. This technical pattern often signals that a downtrend might be turning into a recovery.

Crypto With Gopal explained that PEPE is pushing toward the $0.0000050 to $0.0000053 neckline zone. If buying pressure holds and market sentiment stays favorable, a confirmed breakout above this neckline could trigger a stronger recovery move. On the other hand, if momentum fails or market conditions turn adverse, the price could easily pull back toward lower support levels.

Why Caution Is Warranted: Red Flags Signal Potential Pullback

Despite the impressive price rise, PEPE remains a highly speculative meme coin. Assets in this category are known for extreme price volatility, making rapid pullbacks just as likely as rapid rallies.

Key technical tools are already flashing warning signs. PEPE's Relative Strength Index (RSI)—a technical metric measuring momentum on a scale from 0 to 100—recently exploded to 94.

An RSI reading above 70 typically signals that an asset is in overbought territory and due for a price drop. Conversely, readings below 30 are usually viewed as oversold territory.

On-chain data adds another layer of caution. Exchange netflow metrics show that exchange inflows have recently outstripped outflows.

When investors transfer tokens from self-custody wallets to centralized trading platforms, it usually signals an intention to sell, thereby increasing immediate overhead selling pressure.

Summary and Key Takeaways

• Price Action: PEPE jumped 11% on October 23, trading near $0.000005076 with a market cap over $2.13 billion.
• Meme Coin Ranking: PEPE reclaimed its rank as the 4th-largest meme coin, overtaking MemeCore (M) which briefly took the spot on October 22.
• Bullish Projections: Analysts point to a potential inverted head-and-shoulders breakout toward $0.0000050-$0.0000053 and a $2.21B market cap target, provided market momentum stays strong.
• Risk Factors: An RSI spike to 94 signals extreme overbought conditions, while rising exchange inflows highlight potential short-term selling pressure.