Introduction
PEPE, a meme coin built on the Ethereum platform, emerged in April 2023, grabbing attention despite the mystery surrounding its creators. Initially valued at close to $0.00000000 on April 15, 2023, PEPE swiftly climbed the ranks to become one of the top 100 cryptocurrencies by market capitalization, currently holding the 70th spot.
Source: IntoTheBlock
Within a mere 20 days of its inception, PEPE's market cap exceeded $1 billion, marking an astounding 7,000% surge in value within just 17 days. This remarkable growth has set a significant milestone in the domain of crypto meme coins.
Recently acclaimed as the most profitable meme coin, PEPE’s future rally remains uncertain. However, indicators hint at exciting developments expected for PEPE in the upcoming month of June.
Historical Price Insights
PEPE operates on a deflationary model, systematically burning a fraction of tokens with each transaction to foster scarcity and potentially elevate the value of the remaining tokens over time.
Source: IntoTheBlock
Employing a redistribution mechanism, PEPE distributes a part of every transaction to existing token holders, encouraging user engagement and long-term investment.
The price of PEPE has been subject to significant fluctuations within a span of 24 hours, experiencing spikes of over 40% as well as sharp declines. Notably, a substantial downturn occurred in January 2024, leading to almost a 50% drop in the coin's value.
Source: IntoTheBlock
Despite this, PEPE embarked on an impressive bullish run in March, followed by a correction in March and April, and then gathered momentum in May, defying the broader trend in the cryptocurrency market.
The uptrend commenced towards the end of April, gaining momentum after breaching the daily MA 50 at $0.000073. By May 27, the price surged to an all-time high of $0.00001725, marking an impressive 88% increase following the SEC's approval of Ether ETF filings on May 20.
PEPE has shown favor to its holders over the last month. Presently, 91.59% of PEPE addresses, representing 227,990 holders, stand at a profit. Additionally, 5.32% of addresses, equating to 13,250 holders, are at breakeven with the current token price around $0.0000144.
As of late May 2024, the chart indicates a corrective phase on a monthly scale, raising questions about the continuity of the rally in June.
Price Projection
PEPE has earned the 28th spot in market capitalization on CoinGecko and clinched the 20th position on CoinMarketCap, boasting a current market cap of $6.16 billion as of June 1.
In the past month, PEPE has recorded a surge of 107%, outperforming the general market and average meme coins. This rise has propelled PEPE above its 50, 100, and 200-day EMAs, showcasing a strong bullish trend.
Analyzing the market value to realized price ratio of PEPE can provide insights into its potential "true" value.
Source: IntoTheBlock
Despite its impressive gains, meme coins like PEPE are known for their volatility. Many analysts anticipate a probable additional price correction. For instance, Ali Martinez has highlighted bearish signals, highlighting that PEPE's daily RSI has breached 70, an overbought level often preceding price corrections or consolidations.
When the average RSI value surpasses 70, the risk of a sell-off escalates. Nonetheless, it's crucial to acknowledge that the market can linger in overbought territory for extended periods, with prices continuing to climb.
According to the RSI heat map, PEPE presently stands at a "strong" level, signaling a potential "sell" indication. IntoTheBlock data also suggests a bearish sentiment as June approaches.
Another crucial metric is the historical correlation with Bitcoin's price. Illustrating predominantly negative correlation with both Bitcoin and Ethereum within a year since its inception, PEPE's trajectory amid the anticipated rallies of Ethereum and Bitcoin in June raises uncertainties about its future path.
PEPE, considered one of the most volatile coins in the market, functions as a high-yield asset with an exceedingly speculative price devoid of fundamental underpinnings. With June's commencement, a pivotal period awaits PEPE's foreseeable trajectory.
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