- PEPE token price achieved a new high of $0.00001725, marking an 88% rise following the SEC’s approval of Ether ETFs.
- The price surge reflects a broader trend among Ethereum-based memecoins, including Dogecoin, Shiba Inu, and Mog Coin.
- Technical analysis indicates a possible 40% price correction for PEPE in June due to bearish divergence and overbought conditions.
The cryptocurrency market witnessed a notable surge in Ethereum-based meme coins, with the Pepecoin (PEPE) reaching an unprecedented high on May 27. This rally coincided with positive developments in the broader crypto sector, particularly the U.S. Securities and Exchange Commission’s approval of several Ether ETFs on May 20, which has spurred interest in high-risk, high-reward assets.
A Sector-Wide Rally
Following the SEC’s decision, PEPE token’s value increased by 7.60%, hitting a record price of $0.00001725. This significant gain reflects an 88% increase since the approval, illustrating the market’s optimistic reception. Other Ethereum-based memecoins such as Dogecoin, Shiba Inu, and Mog Coin also experienced substantial gains, underscoring a bullish sentiment across similar assets.
Potential Market Correction
Despite the current bullish trends, technical indicators suggest a possible downturn. PEPE’s daily relative strength index (RSI) is showing a bearish divergence, a scenario where price highs are not supported by momentum, hinting at weakening upward movement. This divergence is reminiscent of the market’s behavior in January when a similar pattern preceded a 40% price drop.
Additionally, the RSI has surpassed the 70 mark, indicating overbought conditions which often lead to price corrections or consolidation. Analysts predict that PEPE could see a retracement to its 50-day exponential moving average (EMA) around $0.00000965 by June, potentially reflecting a 40% decrease from its current levels.
Whale Movements and Market Sentiment
The dynamics within the PEPE market are also influenced by the actions of its largest holders, often referred to as “whales.” Recent data indicates these significant investors are reducing their holdings, likely taking profits during the recent price peaks. This trend has led to an increased supply of PEPE tokens among smaller investors.
Conversely, there are still instances of traders withdrawing substantial amounts of PEPE from exchanges, suggesting a strategy to hold the tokens in anticipation of further gains. This mixed sentiment highlights the speculative nature of memecoins and the varying strategies of different investor classes.
