Pepe (PEPE) Surges 23% in a Day…Why is Money Flowing Back into Meme Coins?

▲ Pepe (PEPE)/AI-generated image ©

Pepe (PEPE) surged over 20% in a single day, leading the meme coin rally. Trading volume surged by over 200%, breaking through key resistance levels, while the movement of funds into altcoins and a short squeeze (buying pressure resulting from the liquidation or covering of short positions) amplified the gains.

According to CoinMarketCap, a cryptocurrency market aggregator, on September 22 (local time), Pepe traded at $0.00000487, up 23.60% over the past 24 hours. Although the overall virtual asset market showed strength, with Bitcoin (BTC) rising 7.24% during the same period, PEPE recorded a significantly higher growth rate.

The direct catalyst for the surge was the breakthrough of the $0.00000458 resistance level. On September 21, PEPE broke through this price point and surpassed all major moving averages. Its 24-hour trading volume also surged by 200.35%, exceeding $1 billion. With this breakthrough accompanied by massive trading volume, whether the previous resistance level of $0.00000458 can act as a new support level has emerged as a key factor for short-term trends.

Increased risk appetite across the broader market also contributed to the upward trend. Funds flowed into high-beta altcoins and meme coins alongside Bitcoin's surge, and the rising Altcoin Season Index reflected this sentiment. Furthermore, a short squeeze, triggered by the liquidation of leveraged positions betting on a decline, generated additional buying pressure and expanded the gains.

However, short-term overheating signals have also emerged. The 4-hour Relative Strength Index (RSI) entered the overbought zone at 82.05. If PEPE maintains $0.00000458, there is a possibility it could retest its September 21 high of $0.00000515, but if this support level breaks, it could rapidly correct down to the 4-hour Supertrend support level of $0.00000431.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*