The world of cryptocurrencies is witnessing a familiar sight: a meme coin on fire. PEPE, a token bearing the image of the internet's favorite frog, has skyrocketed in value in recent weeks, leaving investors wondering whether this is the dawn of a new era or a passing fad.
Baby on a Tear: New Highs and Whale Activity
Over the past month, PEPE has been on a tear, beating expectations and leaving a green trail for investors. The price triumphantly reached a new all-time high, rising more than 100% in just 30 days. This astronomical rise translated into happy traders, with IntoTheBlock data revealing that a whopping 97% were making significant profits.
CoinGecko data shows that Pepe rose 56% in the previous week and 99% in the past month, reclaiming its position as the third largest meme coin by market cap from Dogwifhat (WIF).
The upward momentum shows no signs of slowing down. The past 24 hours saw another 3.7% rise, pushing PEPE to its current peak. This impressive performance received a lot of attention, not only financially, but also on social media. The coin's social volume has increased, indicating increased interest and online chat.
To make matters worse, whales, a term used to refer to large investors with significant purchasing power, made waves. Lookonchain, a blockchain analytics platform, recently reported that a whale had withdrawn a staggering 500 billion PEPE from Binance, a major cryptocurrency exchange. This collective accumulation indicates a whale-sized vote of confidence in Bibi's future.
Buying a rabid or overheated engine?
While the recent price increase and social media buzz are undoubtedly positive signs, some analysts are urging caution. A closer look at technical indicators reveals potential signs of an overheated market. the Chaiken Cash Flow (CMF)which measures buying and selling pressure, registered a decline.
Likewise, the Money Flow Index (MFI) and Relative Strength Index (RSI) are hovering in the overbought zone, indicating that the price of PEPE may be due for a correction.
The picture is further complicated by selling pressure. While some investors accumulate, others may cash out their profits. Santiment, a cryptocurrency analysis platform, noted a rise in PEPE exchange outflows last week, indicating buying pressure. However, they also noticed an increase in supply on exchanges, suggesting that some investors may be taking advantage of the higher selling price.
Possible price correction
NewsBTC analyzed the daily chart of PEPE to gauge the impact of potential selling pressure. Their analysis suggests that the price may first fall to $0.0000122 before finding support and starting another bullish wave. However, a deeper correction could see PEPE fall to $0.000010 or even lower.
The most widely traded coin is Memecoin
Meanwhile, Pepe was still among the most actively traded crypto assets over the previous day, according to data from Binance, with only BNB Coin (BNB), Bitcoin (BTC) and Ethereum (ETH) surpassing it.
Pepe remains the most widely traded meme coin, surpassing popular coins like Dogecoin (DOGE), Floki (FLOKI), and Shiba Inu (SHIB).
Featured image from ART street, chart from TradingView
