NOIDA (CoinChapter.com) — Bitcoin’s (BTC) price rally has helped the prime crypto trade near its highest levels in 26 months. The resulting bullish sentiment has sparked memecoin mania, which helped Pepecoin (PEPE) rally, nearly doubling the token’s price in less than 48 hours.
What Is Driving PEPE Memecoin Mania?
Bitcoin price action usually impacts the wider crypto market due to the token’s dominance, which is currently at nearly 52% per CoinMarketCap data.
As more participants enter the market, small-cap tokens like memecoins benefit since traders look to make instantaneous profits. Hence, the memecoin mania resulted in markets seeing a resurgence of investor demand, which led to a ripple effect boosting PEPE prices.
Furthermore, social media hype has also helped the Pepecoin price rally. The memecoin was one of the most searched tokens on CoinGecko on Feb. 27, highlighting the mania from the PEPE coin’s recent rally.
Moreover, several crypto influencers also shilled the token, claiming that the “meme season” has arrived. The term refers to a period in the cryptocurrency market when altcoins (any cryptocurrency that is not Bitcoin) significantly outperform Bitcoin regarding price gains.
The memecoin mania helped PEPE race ahead of Shiba Inu’s SHIB token regarding 24-hour trading volume, with a value of $951 million. In addition, the memecoin is close to the heels of Dogecoin, which has a trading volume of just under $1.1 billion at the time of writing.
Over the past seven days, the PEPE price rally has recorded the highest gains among memecoins over the past 7 days, riding the hype wave.
PEPE Price Rally Ventures Into Overbought Region
Meanwhile, the memecoin mania-fueled PEPE price rally resulted in the token’s relative strength index venturing into the overbought region, scoring 77.8 on the daily charts.
RSI is a momentum indicator measuring asset price movements to identify overbought or oversold conditions. The overbought RSI level indicates the strong presence of bulls in the market.
However, traders often consider an overbought RSI level a bearish signal since the occurrence usually precedes a bearish reversal or consolidation phase for the underlying token.
Hence, the PEPE rally risks a drop to the support level near $0.00000162. Moreover, breaching the immediate support level could see Pepecoin price risk testing the 50-day EMA (purple wave) and 100-day EMA (blue wave) support confluence near $0.00000118.
PEPE price rally rallied nearly 100% WTD to reach a daily high near $0.00000229 on Feb. 27. If the rally continues, PEPE price could flip the immediate resistance near $0.00000241 before targeting the resistance near $0.000003.
