Pepe records a new ATH but is immediately rejected: fears of a retracement increase

Yesterday, the memecoin Pepe reached a new ATH in price, breaking the previous all-time high at 0.0000259 dollars.

For a few minutes, it had reached a valuation of over 11 billion dollars, only to undergo a slight downward correction triggered by the bear.

With the crypto market opening the week in red, traders are wondering if Pepe will attempt a new leg up or mark a deeper retracement.

All the details below.

Pepe surpasses its previous ATH and reaches a valuation of 11 billion dollars

The year 2024 was a particularly bullish year for the cryptocurrency Pepe, which updated the ATH on several occasions, demonstrating its incredible strength to the public.

Yesterday the memecoin inspired by “Pepe The Frog” reached a new all-time high hitting 0.00002836 dollars with a market capitalization of 11.6 billion dollars.

According to the data from CoinMarketCap, it has increased by about 148% in the last 30 days, while in the last week the growth stands at 30.7%.

The umpteenth ATH of Pepe was massively celebrated on X by the supporters of the project and by crypto influencers.

At this moment, it appears as the 20th cryptocurrency by market capitalization, just above Uniswap and just below Bitcoin Cash.

The sentiment of the currency remains still super bullish, despite not having made much progress from yesterday’s high, given the unwanted presence of the bears.

The trading volumes have skyrocketed, accompanying the chart movement, so much so that they surpassed in 24 hours what was recorded by the meme DOGE.

Now Pepe might look for a new solid support before continuing its climb towards infinity, ending the year as a true bull success.

Supporting the bull theses is the Chaikin Money Flow (CMF) indicator from IntotheBlock, which exploded yesterday after 3 weeks of inactivity, indicating strong buyer interest. The CMF indicates that investors are confident in the performance of PEPE, which could lead to greater inflows and limit profit-taking.

Indicatively, if the crypto manages to keep the support of 0.000023 dollars steady, we could expect another ATH by the end of the year.

Crypto market in red at the start of the week: where are we headed with memecoin?

While Pepe marks a new ATH, the crypto market records a day in deep red, with the main assets halting their expansion phase.

Yesterday BTC reached with a spike 94,000 dollars while ETH neared 3,500 dollars, triggering fear and concern among crypto traders.

After the last 2 months marked by the rise, the first substantial sales arrive to spoil the bull party.

Some Whales started unloading large positions in the afternoon, triggering a cascade of liquidations across a wide range of assets.

In total, in the last 24 hours, 1.65 billion dollars have evaporated, most of which is the result of over leveraging by the bettors.

Overall, 538,967 were liquidated, with the largest loss occurring on the ETH-USDT pair with a position of 19.69 million dollars.

Today the market seems to be in slight recovery but it is not yet enough to celebrate the return of the bullish bias.

Nonetheless, the liquidation map on Coinglass does not appear predominantly red, but leaves room for some memecoin in green.

Coins like Pepe, Doge, BabyDoge, Neiro, and Wif reflect an ambiguous situation with the rest of the market, where the majority of those liquidated were the bears.

Probably the traders took advantage of the ongoing sales to strengthen their positions on the top meme, causing the liquidation of those who were shorting.

This is a signal of absolute strength that could fuel new leg ups for the more speculative assets.

Likely the memecoins will still be the protagonists of the crypto market for a few more months, waiting for the attention and capital to shift elsewhere.

Source: https://www.coinglass.com/LiquidationData

Technical analysis on Pepe: investors fear a retracement of the crypto

Even though the sentiment and the liquidation data seem to favor PEPE, it is not certain that it cannot reverse its price structure from the last ATH.

Traders fear that another deeper correction is expected for the memecoin, which could disrupt its positive momentum.

The RSI at 14 days indicates a level of 70, which suggests a potential overload phase that will culminate with a short-term consolidation.

Open interest and derivative volumes indicate a still high attention to speculations, while the drop in the funding rate suggests a situation of equilibrium.

Furthermore, the activity of PEPE holders on DEX has increased significantly in a manner similar to other selling events.

Last week, active users returned for the first time since April 2023 to exceed 40,000, a sign of likely profit-taking.

Furthermore, the trading volume on decentralized exchanges has exploded similarly to what happened in March 2024, just before a cryptocurrency bear.

Source: https://dune.com/obchakevich/pepe

In summary, the general outlook for PEPE is still bullish, with prices holding a hot level from which a new rally and a new ATH could start.

At the same time, however, some indicators signal concrete risks of a collapse in the short term, especially if we compare these data with historical sets from the past.

On the other hand, after such strong growth in the month of November, a consolidation at slightly more modest price levels would now be appropriate.