PEPE has just risen more than 20% in one week, which was due to the fact that it experienced an influx of buying volume from traders that capitalized on World Frog Day.
World Frog Day is a recurring event that has happened since 2009 which is a national day to celebrate and raise awareness around endangered frog species.
Even though it has almost nothing to do with PEPE, aside from both of them being in the same category of the frog topic, the price of PEPE surged even though the market is not really as positive as it was when the price surged significantly.
World Frog Day Hype
World Frog Day happened on March 20th 2024 which is a day to celebrate and raise awareness around endangered species of frogs.
The correlation of PEPE and the event is low, but in the meme coin sector, these kinds of things always happen where the traders and the degen speculators, usually correlate a certain event with a meme coin.
Even if the correlation is low, usually it leads to an effect where the meme coin itself surged significantly in a short period of time.
The current condition can be evidence for this correlation where the price of PEPE has risen more than 20% in a week from the occurrence of the event until now.
This is not the first time that PEPE is correlated with an event that is somewhat not correlated to the project itself but creates a positive sentiment for the token.
The previous event was leap day, which is the event celebrating the leap day of February which is the 29th of February that only occurs every four months.
Leap day was correlated with how frogs move which is by leaping. Seems such a stretched for it to be correlated to PEPE, but the community has managed to do it, where the price of PEPE increased significantly in the last days of February 2024.
Post Hype Analysis
Sadly, because the correlation is not that strong, the trend will evidently come to an end where there is a possibility that PEPE will go into a correction due to the fact that buying volume has been at an overbought condition.
Looking at the weekly chart, it can be seen through the RSI indicator that the volume of PEPE is at an overbought condition, which is why there is a possibility that the selling volume will start soon.
Looking at the resistance zone itself, it can be seen that PEPE is having a hard time going through the resistance level of $0.00000836 which might lead to a correction.
The target for this correction might stand around the $0.00000668 until $0.00000436, with a possibility of a correction going lower into the $0.00000281.
According to the Exponential Moving Average Indicator, using the 26 candlestick average, it can be seen that the support level is the same as the lower support zone which is around $0.00000281.
This is around 64% correction from the current price level which means that if you are holding or trading PEPE, it is better to have a good exit plan just in case this happens.
But as nothing is sure since the volatility is still high for PEPE, it is good to stick to the original trading plan for PEPE that each trades or investors have prior to buying PEPE.
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