In recent weeks, the frog-themed meme coin, Pepe (PEPE), has captured the spotlight with its remarkable performance in the cryptocurrency market. Surpassing its previous all-time high (ATH) last week, PEPE has embarked on a promising upward trajectory. As a mid-cap meme coin with a fully diluted valuation of approximately $8.8 billion and a daily trading volume of around $4.8 billion, PEPE has surged over 150 percent in the past fortnight. This impressive rally has propelled the coin into a highly anticipated price discovery phase.
After more than seven months of consolidation, PEPE’s price is now poised for an exponential rise in the coming months. The meme coin industry is expected to take the lead in the approaching altcoin season, driven by a significant decline in Bitcoin’s weekly dominance.
Why is PEPE Price Moving Ahead of Others?
As a prominent meme coin within the Ethereum ecosystem, PEPE has garnered substantial interest from investors, thanks to its deep liquidity across various DeFi protocols. Meanwhile, Dogecoin (DOGE), the largest meme coin, has also broken free from a prolonged bearish consolidation, signaling the start of another meme season. Last week, PEPE received a significant boost through listings on top-tier cryptocurrency exchanges, spearheaded by Coinbase Global Inc. (NASDAQ: COIN) and Robinhood Markets Inc. (NASDAQ: HOOD).
Short Term Target
This recent surge in PEPE’s price bears resemblance to the rally observed in February. In just 40 days, the price of $PEPE skyrocketed more than tenfold, climbing from $0.000009 to $0.0001. If history repeats itself, we could witness the price reaching $0.0009 by December 16, providing an exciting holiday surprise for investors.
With the transition of Pepe shorts to longs strengthening the macro short squeeze, the Ethereum-based meme coin is poised for continued upward momentum. From a technical analysis perspective, PEPE appears to be following a similar bullish breakout pattern reminiscent of the February 2024 rally. If this scenario unfolds, the PEPE price could easily achieve a tenfold increase from its recent bullish breakout, reaching as high as $0.0009.
Technical Insights and Considerations
In the 1-hour time frame, PEPE’s price has been forming a potential bullish pennant, suggesting the possibility of a rally towards a new ATH. Furthermore, the weekly Relative Strength Index (RSI) has surged above the 70 percent threshold for the first time since May this year. However, traders should remain vigilant for potential fakeouts to the lower end before a definitive bullish breakout.
