PEPE's rebound this round is indeed fierce. Starting from $0.00000377 in early December last year, it surged 30% to 60% within just a month. Currently, it is oscillating around $0.000007, still climbing 15% in 24 hours, with daily trading volume surpassing $1.3 billion. Market enthusiasm is extremely hot.

Several factors are stacking to drive this upward momentum. Well-known trader James Wynn recently predicted publicly that PEPE could reach a market cap of $69 billion, with a target price of about $0.000016, which excites retail investors who fear missing out; short positions have been liquidated for over $10 million, with concentrated liquidations fueling the rally; plus, the meme coin sector as a whole has been warming up for the New Year, with PEPE as the leader naturally taking the lead.

But a clear warning must be given: now is really not the time to heavily chase high positions. The risk has already inflated to a quite ridiculous level. From a technical perspective, RSI has soared above 75, indicating a serious overbought signal, and a short-term correction is highly probable. Some analysts even predict a decline of 20% to 30% next week.

More importantly, meme coins themselves lack fundamental support; they rely entirely on sentiment and hype. Historically, such crazy surges are often followed by rapid crashes, sometimes within just a few days. Jumping in at this level is likely to be catching a falling knife, serving as a bagholder for those who entered earlier. Although in the long term, clearer regulations and the continued strength of Bitcoin do support bullish expectations, and PEPE might still have some upside potential, this moment is not a good entry point and could trap you at a high position.

The trading advice is quite straightforward. If you only have small amounts for speculation and can tolerate big fluctuations, you might gamble a little, watching the psychological threshold of $0.000010. But if you have larger funds, either wait patiently for a pullback to the $0.000005 to $0.000006 zone before acting, or stay on the sidelines and don’t rush to buy.

In the crypto market, especially with meme coins, chasing the rally and selling on the dip is always the fastest way to lose. No matter how good the outlook, never put all your eggs in one basket. Protecting your principal always comes first.