Meme Coin Strikes Back: Pepe Coin’s Monumental Price Surge Explained

Pepe coin (PEPE), the frog-meme cryptocurrency, astonished market observers this week with an epic 121% two-day price increase to $0.00266. So what explains this meme coin’s seemingly miraculous resurrection?

TLDR

• Pepe coin (PEPE) price surged 121% in two days to $0.00266, continuing its volatility
• The rally was likely fueled by the Ethereum price rise beyond $3,000, sparking interest in ETH-related altcoins
• PEPE needs to set up a higher high to extend the uptrend, otherwise it risks a correction if a lower low forms
• Six PEPE whales sold nearly 2 trillion tokens worth $4.37 million during the price surge, profiting about $2 million
• Social media hype and speculation, especially on Twitter where PEPE trended, also contributed to the coin’s resurgence beyond the recent 140% weekly gain

The most likely driver was Ethereum’s push above the key $3,000 level, reinforcing its preeminent status as the second largest crypto. Investors eagerly bid up ETH-based assets like PEPE in response. As an Ethereum meme coin, PEPE benefited from spillover interest after the NFT-fueled meme coin mania of 2021 subsided. Its distinctive frog branding and quirky appeal also attracted buys from meme traders.

24 Hour Pepe Coin Price from Coingecko

Social media hype amplified these tailwinds. PEPE trended on Twitter with over 53,000 posts as its vibrant community speculated on the token’s potential. Multiple influencers tweeted about the rally, spreading FOMO. This retail investor enthusiasm created self-fulfilling momentum.

However, the question now is whether PEPE can sustain its epic run. To keep extending the uptrend, PEPE needs to set up a higher high on its chart by surpassing its recent peak of $0.00297. This would indicate strong buying interest and an impulsive uptrend. Failure to make a higher high runs the risk of a correction as Technical traders sell into weakness.

Intriguingly, as buyers bid up the token, whales were aggressively selling into this liquidity. According to onchain data, six large wallets offloaded nearly 2 trillion PEPE worth $4.37 million during the frenzy, reaping about $2 million in profits. This massive selling pressure could dampen PEPE’s animal spirits if it persists.

The price of $PEPE has increased by more than 60% today!

6 wallets sold 1.98T $PEPE($4.37M) to take profits, with a total profit of ~$2M.

Wallet"0xa145" deposited 486.72B $PEPE($1.04M) to #Binance 6 hours ago, making ~$515K (+97%).https://t.co/RyJqmGu1At

5 wallets (possibly… pic.twitter.com/rulYxYE4W5

— Lookonchain (@lookonchain) February 27, 2024

For now, though, speculative fervor around this left-for-dead meme coin remains at a fever pitch. Its market cap exceeds $1.1 billion after the rally, reaching towards its former all-time high around $1.8 billion. A fully extended price target using these levels would be in the range of $0.0035 to $0.006 – 130% to 300% above current prices around $0.00266.

So can PEPE sustain such massive returns, or will this bull trap collapse under the weight of whale dumping? Much depends on whether this burst of hype and volatility drags in enough new buyers to form a durable price floor and reset PEPE’s market structure to retest old highs.

For now, the fate of the frog king lies in the hands of crypto’s growing retail army.

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