After a remarkable 1,940% surge over a week, Purple Pepe [PURPE] faced a significant pullback in the last 12 hours. The memecoin’s value has dropped by 33% from its peak at $0.0003713.
Within the past day alone, the token has surged by more than 120%, accompanied by a 190% increase in its daily trading volume. Despite Bitcoin [BTC] experiencing a downturn from $99.8k starting Monday, the PURPE rally has not been deterred.
Sentiments surrounding Purple Pepe remain positive. This meme with a market capitalization of $86.35 million entered the market in June 2024. Trading volume stayed below $1 million from late August until November 14th.
The recent surge in trading volume hints at genuine demand driving PURPE’s rapid rise. The pressing question now is whether market enthusiasm will continue to stay bullish in the weeks to come.
Purple Pepe’s Rebound Following the Pullback
The market dynamics of Purple Pepe turned bullish on November 13th after the token soared by 230% in 8 hours. This surge coincided with heightened trading volume, indicating increased trader engagement.
Many small-cap meme coins have shown spikes of 100% or even 1,000%, only to retrace a significant portion of those gains rapidly. Therefore, Solana coins with market caps below $10 million skyrocketing tenfold within a week do not always guarantee sustained growth. Profit-taking pressures and a lack of fresh demand often lead to substantial setbacks for these coins.
Observant and skilled traders who monitor numerous tokens may place small bets on those showcasing heightened social media activity or trading volume, anticipating further increases.
Presently, Purple Pepe has retested the 50% Fibonacci level at $0.0001966 and rebounded positively, maintaining its bullish stance. A shift to a short-term bearish outlook would occur if PURPE drops below $0.00014.
Notably, Purple Pepe has yet to secure listings on major centralized exchanges – a development that could amplify its exposure and subsequently, demand.
Disclaimer: The insights shared are personal opinions and do not serve as financial, investment, or trading advice.