PEPE price surges 40% in 8-hours as Coinbase, Robinhood listing sparks $10 billion demand

Why is PEPE price going up? 

PEPE price surged 40% within a frenetic 8-hour period on November 13, as markets reacted to its listing on major US-based trading platforms Robinhood and Coinbase. On-chain data shows that PEPE’s short-term trading volume as exceeded its current market cap, signaling potential for intense volatility in the days ahead.

PEPE price hits all-time high of $0.000020 after Robinhood and Coinbase listing

Elon Musk’s involvement in Donald Trump’s victorious campaign has sparked an increase in global demand for memecoins in Q4 2024. While Dogecoin and prominent Solana memecoins have dominated the top-gainers charts over the past month, PEPE price registered a similar parabolic breakout.

On November 14, two prominent US-based trading platforms Robinhood and Coinbase announced the listing of PEPE. This instantly triggered intense market frenzy, driving PEPE price to new all time highs.

Amid the intial Trump-driven rally, PEPE price had underperformed rivals memecoing DOGE. While Dogecoin price skyrocketed by more than 120% since Nov 5 election day, the blue patch in the chart above shows that PEPE price only grew by 70% during that period.

However, following the Robinhood and Coinbase listing confirmation, PEPE price rally entered second-gear. Within a frenetic 8-hour period after the listing announcements, PEPE price surged by another 53%, moving from $0.000013 on around 08:00 CET, to hit an all time high of $0.000020 by 16:00.

Volatility Ahead as PEPE Trading Volume Crosses $10 billion

While Coinbase is the second largest crypto exchange behind Binance, Robinhood is the most popular retail trading platfrom in the US. Evidently, PEPE’s parabolic surge on Nov 14, has coincided with increased short-term demand from traders on these two unicorn platforms,

In confirmation of this stance, on-chain data culled from Coingecko shows an unusual trend between PEPE’s 24 hour trading volume and its market capitalization.

As seen above PEPE trading volume hit $10 billion on November 14, surpassing its all time market cap of $8 billion.

Evidently, PEPE’s increased trading volume signals a spike in investor interest and market participation from the Robinhood and Coinbase listings. However, this move that could trigger intense market volatility in the days ahead.

How high can PEPE price go?

Trading Volume-to-Market Capitalization (TV-MC) ratio is a metric used in crypto analytics to measure an asset’s short-term market liquidity relative to its fundamental valuation.

For PEPE, the 24-hour trading volume of $10 billion compared to its market cap of $8 billion reflects a trading volume-to-market cap (TV-MC) ratio of 1.20. This means the volume of PEPE traded within a single day exceeded its entire market valuation by approximately 20%.

A TV-MC ratio exceeding 1.0 indicate heightened speculative activity rather than stable accumulation by long-term investors. Without a commensurate level of scarcity

Typically, TV-MC ratio Values above 0.5 indicate heightened speculation, which could potentially higher volatility within the Solana memecoin sector, compared to more mature markets.

For context, Bitcoin’s TV-MC ratio is trending at 0.07, amid the current market frenzy, signaling greater fundamental investment retative to short-term buying pressure.

In essence,  high TV-MC ratio can be a warning sign that the price may be unsustainable at current levels. With PEPE price trending at all time highs above $0.0000020, risk of profit-taking is significantly high.

More so, historical trends shows that when PEPE registered its two previous all time highs, in March and May 2024, prices entered a double-digit correction within a week.

Hence, without a commensurate increase in long-term acquisition to absorb sell-pressure, if intense short-term trading activity slows down or profit-taking sets in, there’s a risk that PEPE’s price could correct sharply as towards the $0.000015 in the coming days,

PEPE Price Forecast: Correction Risk Ahead if $0.000017 Support Caves

PEPE is currently trading at all time highs around the $0.000019 level at the time of publication. However, the 24-hour trading volume of $9.4 billion surpassing its $7.9 billion market cap, reflects heightened speculative interest amid PEPE’s listing on Robinhood and Coinbase.

In confirmation of this narrative, technical indicators on the PEPEUSD daily chart below also signal potential correction risks.

Firstly, PEPE’s Bollinger Bands are widening, with the upper band and lower bands points in opposite direction, a typical signal of extreme price swings.

This widening Bollinger bands suggests an intense volatility narrative where the price may be overstretched, potentially exposing it to a sudden correction if buyer enthusiasm wanes.

Hence, if traders take profits early, as observed when PEPE price reached new all-time highs, failure to close above the $0.000017 level, could raise the risk of a sharp correction towards the $0.000015 psychological support level.

Likewise, the Relative Strength Index (RSI) also confirms the bearish stance. At press time PEPE RSI has reached steep 85.92, further affirming that signaling overbought market conditions.

A break below $0.000017 could open the door to a deeper correction, possibly targeting the $0.000010 area as the middle Bollinger Band aligns with this level.

On the flip side, PEPE closes above $0.000020, the bearish outlook may be invalidated, paving the way for further gains. In this scenario, a breakout above $0.000020 could set PEPE on course to test the $0.000025 resistance level, where fresh selling pressure might emerge.