Key Takeaways
- PEPE is leading the memecoin rally after gaining 33% from its recent lows. It is also outperforming DOGE and SHIB.
- Memecoins have collectively gained 7.4% in marketcap as investors increase their speculative interest.
- Technical indicators show that Pepe has a bullish outlook. However, it needs to break above resistance at $0.00000760.
- Macroeconomic factors like the US’ cooling inflation could sustain the rally if the risk appetite continues to hold.
- DOGE, SHIB, FLOKI, and BONK are also gaining traction, with a 4% increase in the memecoin market’s capitalization.
The crypto market is enjoying a fresh wave of bullishness over the last day, with Bitcoin leading the altcoins up.
The memecoin market in particular has seen assets like PEPE, Dogecoin, and Shiba Inu leading the charge.
This surge in the memecoin market has been led by Pepe, especially with the recent Consumer Price Index (CPI) data from the U.S. igniting renewed investor confidence.
But is this rally sustainable? Let’s go over some of the key facts for this top memecoin.
PEPE Takes the Lead Amid Market Optimism
Pepe surged in price on Wednesday, breaking above the $0.00007 mark and registering a 33% price increase from its recent lows.
This rally came amid a surge in risk appetite among investors, with the release of some very positive U.S. inflation data.
Inflation has now cooled from 3.0% to 2.8%, giving investors a major opportunity to reenter the market for risky assets like Bitcoin and the alts.
According to data from CoinMarketCap, the memecoin market’s total market cap climbed by an impressive 4% to a new high of nearly $50 billion.
Pepe emerged as a top gainer among these tokens, with a 7% increase on the first day of the rally.
On the other hand, Dogecoin and Shiba Inu lagged with price increases of around 2.2% and 2.4%, respectively.
Historically, when memecoins outperform the market, it means that investors have a large appetite for risk and are going all-in in terms of speculation.
Technical Analysis—Can PEPE Sustain Its Uptrend?
According to the charts, Pepe is in a confirmed bullish trend. However, there appears to be some strong resistance somewhere around the $0.00000760 zone.
Moreover, the cryptocurrency appears to be trading within a falling wedge formation as illustrated above, which is a highly bullish pattern.
If Pepe manages to break above this resistance, it has a fair chance of testing the upper trendline of this formation (which also coincides with the 50-day SMA) and breaking out into a massively bullish rally.
On the other hand, a failure to hold above this resistance could trigger selling pressure and push its price towards the $0.00000579 support.
Investors should look out for a decisive close above $0.00000760 with strong volume. This would confirm the bullish momentum and might lead to one of the biggest rallies in the memecoin space.
Relative Strength Index (RSI) and Volume Trends
The daily chart’s RSI currently sits at the 43.29 level, indicating a slightly bearish level of neutrality.
This shows that the bulls and bears might be evenly matched, with the bears holding the upper hand.
However, a break above this $0.00000760 resistance could just be what the bulls need to turn the tide in their favor.
If the bulls lose control of the situation, however, a retracement toward $0.00000669 is likely.
Investors should watch out for the volume indicator as well as a clearing of the $0.00000760 resistance.
Other Memecoins Following the Trend
The rest of the memecoin market appears to be performing well alongside Pepe.
Dogecoin, for example, saw a modest gain of around 3% over the last 24 hours before writing.
However, it is important to note that while DOGE remains the largest memecoin by market cap, its price has been struggling to break a few key resistances
Investors are on the lookout for a breakout above the $0.17 zone, which could signal renewed bullish interest.
Shiba Inu’s 2.4% gain shows that interest in the second largest memecoin is also growing.
However, the memecoin is still below some of its major resistance levels.
Investors must watch out for a SHIB break above the $0.000015 zone, which could trigger a strong breakout.
Floki, on the other hand, saw a 6% gain over the recent rally. This means that if the bullishness persists, this memecoin could be on the verge of challenging its local highs.
How Likely Is A Pepe Surge?
Overall, the decline in US inflation has increased investor appetite for risky assets.
This strengthened appetite has encouraged the inflows of fresh capital into the stock and crypto markets.
If the inflation continues to cool over the coming months, we could see an extension of the bull run.
Another interesting part about Pepe’s trajectory is how its futures open interest recently spiked to $198 million, according to Coinglass.
This marks its highest level since March 7.
While this level is still lower than Pepe’s year-to-date peak of $556 million, the rise in its open interest has shown an increase in market participation.
On the technical front, Pepe’s falling wedge formation indicates that a strong bullish movement is coming, despite the double-bottom neckline at $0.00002830 acting as a long-term resistance target.
If the Pepe rebound holds, the cryptocurrency could be in for a 220% rally, with an upside target of $0.00002095.
