PEPE Soars 55% in 96 Hours – Whale Games or Legitimate Rally?

Meme coin PEPE defies gravity with a 55% surge since May 7—outperforming even Bitcoin’s bullish momentum. But behind the green candles, on-chain data shows whale wallets quietly accumulating.

Are retail traders being set up for a classic ‘pump and dump,’ or is this the start of a new altseason? Crypto’s favorite frog-themed asset now flirts with its Q1 2025 ATH, while skeptics mutter about ‘greater fool theory’ over their artisanal cold brews.

Pro tip: When the market’s this frothy, even the SEC starts checking its Binance account.

Déjà vu or doom? The market has seen this movie before

Such a massive buying pressure from PEPE whales was last witnessed in November 2024 and January 2025.

Source: IntoTheBlock

This surge in buying has pushed the Relative Strength Index (RSI) to 83, DEEP into overbought territory. The last time RSI climbed above 80, PEPE hit record highs—only to crash shortly after.

Historically, when buying activity surged to recently witnessed levels, it has preceded price correction as buyers get exhausted and sellers enter the market to take profit.

For instance, in 2024, when RSI reached 88, Pepe surged to $0.00002525 in late November. When it reached 80, prices rallied to an all-time high in December.

After this price uptick, it followed a massive decline, with the memecoin declining as low as $0.0000052.

Source: TradingView

So, if history rhymes, this wave of buying could be a prelude to another sharp correction.

What do PEPE charts suggest?

According to AMBCrypto’s analysis, with RSI reaching levels associated with correction, we have witnessed signs of a looming pullback over the past day.

As stated earlier, the memecoin has dropped over the past day, abnormally in the trend over the past four days.

However, the market isn’t folding just yet. PEPE’s Exchange FLOW Balance sits at -35.8 billion, showing more withdrawals than deposits. That’s often a bullish sign, as it suggests traders are holding, not selling.

Source: Santiment

The continued accumulation suggests that investors are still bullish and see future potential with the memecoin.

What’s next for the memecoin?

PEPE is still in a strong downtrend at press time, as confirmed by rising DMI. Looking at the Directional Momentum, PEPE is experiencing strong upward momentum with +DI at 46 while -DI at 25.

The momentum suggests a potential continuation of the current trend.

If the trend continues, Pepe will cover the losses recorded on daily charts and attempt a MOVE towards $0.000014. If it breaches this level, the next significant resistance is $0.000016.

However, if the surge in RSI and buying spree leads to history repeating itself, Pepe will retrace to $0.0000107.