Yesterday, November 13, Coinbase made a big move by listing the frog-themed meme coin, Pepe (PEPE), on its spot market. Right after that announcement, the price shot up by 75% in just 24 hours.
While this news seems great for PEPE holders, some analysis suggests that the price might soon take a dip.
In the early hours of trading yesterday, PEPE was priced around $0.000013. Then, Paul Grewal, Coinbase’s Chief Legal Officer, made a cryptic post on X. He teased, “You’ve long wanted the frog. Well, soon you’ll get the frog. Coinbase is adding PEPE to our listing roadmap with the goal of listing later today. Thanks for your patience.” Shortly after, Coinbase confirmed the listing with a frog emoji, and it officially went live later that day. Interestingly, Robinhood also decided to list the meme coin, which helped push PEPE’s price to $0.000022.
The price surge led to a massive profit-driven transaction volume of $53.14 trillion, valued at $1.16 billion. This spike in transactions typically signals selling pressure. So, it’s likely that the token could face a short-term decline.
Although profit-taking has slowed down a bit, the Relative Strength Index (RSI) suggests that PEPE might still see a brief drop. The RSI measures the speed and size of recent price changes. It ranges from 0 to 100 and helps identify whether an asset is overbought or oversold. When the RSI is above 70, it usually means the asset is overvalued and due for a correction. If it’s below 30, it signals a potential rebound.
The recent listing has pushed PEPE’s RSI readings well above the overbought level. This indicates that a price retracement is likely.
On the daily chart, PEPE reached a new all-time high of $0.000023. There doesn’t seem to be any resistance at higher levels, but the overbought condition suggests a potential pullback. If that happens, PEPE could drop to around $0.000019, which aligns with the 23.6% Fibonacci retracement level. If profit-taking intensifies after the Coinbase listing, the price might even fall to $0.000015.
However, if buying pressure keeps increasing, that scenario might not play out. In that case, the meme coin could rally up to $0.000026.