Pepe (PEPE), the frog-themed meme coin, has confirmed a new upward trend after closing above its previous all-time high (ATH) last week. With a fully diluted valuation of approximately $8.8 billion and a daily trading volume of around $4.8 billion, the mid-cap meme coin has surged by over 150% in the past two weeks. This marks the beginning of its long-awaited price discovery phase.
Why is PEPE Price Moving Ahead of Others?
Having consolidated more than seven months, the PEPE price is now well bolstered to rally exponentially in the coming months. Moreover, the meme coin industry is expected to lead in the upcoming altcoin season, which will be triggered by a major drawback of Bitcoin’s weekly dominance.
As a top-rated meme coin on the Ethereum ecosystem, with deep liquidity on various DeFi protocols, Pepe has attracted more investors in the recent past. Moreover, Dogecoin (DOGE), the largest meme coin, broke out of a multi-week bearish consolidation, thus signaling the onset of another meme season.
Last week, Pepe gained substantial momentum with listings on major cryptocurrency exchanges, including Coinbase Global Inc. (NASDAQ: COIN) and Robinhood Markets Inc. (NASDAQ: HOOD). These listings provided significant support to the Pepe community, further solidifying its position in the market.
Short Squeeze and Technical Outlook
With the shift of Pepe shorts into longs, the macro short squeeze has gained strength, paving the way for continued bullish movement. From a technical perspective, PEPE’s price could follow a similar bullish breakout pattern to the one seen in February 2024.
If this scenario unfolds, PEPE could see a 10x surge from its recent breakout, reaching as high as $0.0009.
On the 1-hour time frame, the price has formed a potential bullish pennant, signaling a rally toward a new all-time high. Additionally, the weekly Relative Strength Index (RSI) has surged above the 70% level for the first time since May of this year, indicating strong bullish momentum.
Watch Out for Potential Fakeouts
However, traders should remain cautious. There’s a risk of a potential fakeout to the downside before a true bullish breakout occurs.
In a market where trends shift quickly, Pepe is carving out its place as one to watch in the months ahead.
