The cryptocurrency world is witnessing a familiar sight: a burning meme coin. PEPE, the token bearing the image of the Internet’s favorite frog, has surged in recent weeks, leaving investors wondering whether it is the beginning of a fresh era or a passing fad.
PEPE in tears: fresh highs and whale activity
Over the past month, PEPE has disappointed, exceeding expectations and leaving a green mark for investors. The price triumphantly reached a fresh all-time high, surpassing 100% in just 30 days. This astronomical growth translated into satisfied hodlers, and IntoTheBlock data showed that as many as 97% had quite good profits.
CoinGecko data shows Pepe’s price has surged 56% in the previous week and 99% in the past month, regaining its position as the third-largest meme coin from Dogwifhat (WIF) by market capitalization.
The bullish trend shows no signs of slowing down. There was another 3.7% gain in the last 24 hours, pushing PEPE even further to its current peak. This impressive performance attracted a lot of attention not only financially but also on social media. The coin’s social media volume has skyrocketed, indicating an boost in online interest and conversation.
Adding fuel to the fire, a whale – a term used to refer to gigantic investors with significant purchasing power – is making waves. Lookonchain, a blockchain analytics platform, recently reported that a whale withdrew a staggering amount of 500 billion PEPE from Binance, a major cryptocurrency exchange. This massive accumulation suggests a whale-sized vote of confidence in PEPE’s future.
Are you buying a wild or overheated engine?
While the recent price surge and social media buzz are undoubtedly positive signs, some analysts advise caution. A closer look at technical indicators reveals potential signs of market overheating. The Chaikin Cash Flow (CMF)which measures buying and selling pressure, saw a decline.
Similarly, the Money Flow Index (MFI) and Relative Strength Index (RSI) are hovering in the overbought zone, suggesting that PEPE’s price may be subject to correction.
The picture is further complicated by the presence of selling pressure. While some investors accumulate funds, others may realize their profits. Santiment, a crypto analytics platform, saw an boost in outflows from PEPE exchanges last week, indicating buying pressure. However, they also noticed an boost in supply on exchanges, suggesting that some investors may take advantage of the high price to sell.
Potential price adjustment
NewsBTC analyzed PEPE’s daily chart to assess the impact of potential selling pressure. Their analysis suggests that the price may first drop to $0.0000122 before potentially finding support and initiating another bull run. However, a deeper correction could cause PEPE to drop to $0.000010 or even lower.
The most traded Memecoin
Meanwhile, according to Binance data, Pepe was still among the most traded cryptocurrency assets compared to the previous day, surpassed only by BNB Coin (BNB), Bitcoin (BTC) and Ethereum (ETH).
Pepe remains the most traded meme coin, surpassing popular coins such as Dogecoin (DOGE), Floki (FLOKI), and Shiba Inu (SHIB).
Featured image from ART Street, chart from TradingView
