Pepe's Market Cap Surges 45% Amid Memecoin Rally

Pepe, a prominent memecoin, has been making waves in the cryptocurrency market. The token has garnered significant attention, particularly within the memecoin space, where it trails only Dogecoin and Shiba Inu in terms of market capitalization. This positioning highlights Pepe's growing influence and the increasing interest in memecoins among traders.

One of the key factors driving Pepe's success is the broader rally in the memecoin market. At the beginning of May, the overall memecoin market capitalization stood at $55 billion. Just 12 days later, it surged over 45%, reaching $72.2 billion. This broader rally is reflected in Pepe's performance, as its market cap climbed from around $2.4 billion on March 11 to a significant increase in the following month. This surge was partly driven by Ethereum's recent rebound, which benefited ERC-20 tokens like Pepe.

Pepe's rise has also been accompanied by the emergence of new contenders in the memecoin space. Influencer Pepe (INPEPE) is one such token that has garnered attention due to its unique features and growing community support. INPEPE aims to differentiate itself by offering real-world utility beyond the typical meme coin hype. It introduces a zero-fee exchange platform, cross-chain functionality, and robust security measures. With a focus on transparency and sustainable growth, INPEPE seeks to restore confidence in the crypto space. The token’s presale has already raised a significant amount, signaling growing confidence among investors.

The sentiment around Pepe is mixed, with some traders remaining bullish while others anticipate a cooldown. One trader opened a substantial long position on Pepe with 3x leverage, indicating confidence in its potential for further gains. However, derivatives data hints at more than just short-term profit-taking. In the past 24 hours, Pepe's trading volume has dropped by over 20%, and open interest has declined by 11.42%. This has resulted in more than $4.71 million in long positions being liquidated. On the other hand, on-chain metrics tell a different story. Pepe's holder count has climbed to over 432,000, suggesting continued retail interest and support behind the token. Additionally, some investors appear to be buying the dip and betting on another leg higher.

Technical analysis suggests that if Pepe breaks past the immediate resistance and closes a daily candle above a certain level, it could gain another 31%, potentially reaching the next resistance. The recent breakout from a symmetrical triangle pattern has pushed Pepe to local highs. However, one cautionary signal is the Relative Strength Index (RSI), which is elevated, indicating that the asset is overbought in the short term. Such conditions often precede brief consolidation periods, typically healthy during strong upward trends. A pullback to the breakout zone could present a favorable re-entry opportunity for bullish traders, provided buying pressure remains intact.

Data shows that a Pepe whale has made a large Binance withdrawal in the past day as the memecoin’s price has seen a strong rally in the past week. According to the cryptocurrency transaction tracker service Whale Alert, a massive transaction has been spotted on the Pepe network during the past day. The transfer in question involved the movement of about 1.79 trillion tokens of the memecoin, worth approximately $26.6 million at the time the transaction occurred. Considering the large scale associated with the move, it’s likely that a whale entity was behind it. Whales are the big-money investors who can carry some degree of power in the market, so their moves can be worth keeping an eye on. Naturally, a transaction from just one whale is unlikely to directly affect the asset’s price, but it can still contain a hint or two about what the sentiment may be like among the large holders. Generally, though, there isn’t much that can be gained from looking at transaction data alone, considering that most wallets on the network are anonymous. Luckily, the latest Pepe whale transfer isn’t like this; it has an already identified wallet involved in it. The sender appears to have paid a fee of just 0.000512 ETH to complete this massive transfer. The sending address for this PEPE transaction was a wallet attached to the cryptocurrency exchange Binance, while the receiver was an unknown address, meaning it was likely the whale’s self-custodial wallet. Moves of this type where coins exit the custody of centralized exchanges are called exchange outflows. Usually, investors transfer to their personal address when they plan to hold for the long term, so exchange outflows can be a bullish sign for the asset’s price. This large exchange outflow from the whale has come as Pepe has gone through a notable surge in the past week and has outperformed most of the top coins in the sector.