Pepe Meme Coin Surges 55% in Two Days, Driven by Ethereum's 31% Rally

Pepe, the popular meme coin, has recently surged into the spotlight with a remarkable 55% rally over Thursday and Friday. The coin's price reached as high as $0.0000139, marking a significant increase of over 160% from its March 11th low. This sudden surge has caught many investors, including large whales, by surprise, leading to a split in opinions on whether to buy now or wait for a potential correction.

Analysts have been divided on the future trajectory of Pepe. Some predict a continuation of the bullish trend, while others anticipate a cooldown. The coin's recent performance has been characterized by a classic cup-and-handle pattern, which broke out on Thursday, contributing to the 55% rally. This high-volume breakout suggests a potential for further bullish movement.

Pepe has shown a strong correlation with Ethereum, with smart money investors viewing it as a beta bet on ETH. Ethereum's price surged by 21% on Thursday and an additional 10% on Friday, triggering a bull run in ETH-related meme coins like Pepe. According to data from crypto-correlation.com, there is a 0.767 correlation between Ethereum and Pepe over the past year. If Ethereum were to reach its previous all-time high, Pepe could experience a 152% rally, bringing its market capitalization to $11.5 billion. If experts’ predictions hold true and Ethereum peaks at $6000 in this bull cycle, Pepe could see a 220% rally, pushing its market cap to $15 billion.

Despite the recent rally, it is unlikely that Pepe has exhausted its momentum. The coin has not formed any bearish divergence in any timeframe, which is a positive sign for a bullish continuation. Solberg Invest, a popular crypto trader, predicts that Pepe could reach $0.000022 and $0.000025 in the coming weeks. However, sidelined investors may want to wait for a better entry point as Pepe approaches its macro 0.382 Fibonacci level at $0.00001417, which could act as strong resistance. Additionally, Pepe's daily RSI has formed an ascending wedge, which could lead to a downtrend in the coming days. Ethereum is also facing strong resistance levels, which could affect Pepe's price.

Sidelined investors may get a retest of the $0.0000118 - $0.000012 zone, offering an excellent buying opportunity. Low-cap frog meme coins, which tend to show a strong correlation with Pepe, are also attracting significant interest from smart money investors. One such coin, Mind of Pepe (MIND), an Ethereum-based AI meme coin, has emerged as a promising investment. Its Pepe the Frog persona and the upcoming launch of its AI agent on May 10th have generated considerable buzz. The project has already raised $9 million in its ICO, indicating strong community support. Several prominent analysts and crypto influencers are calling it the next 100x crypto, with the presale ending on May 31st, providing a final opportunity for investors to buy before its launch.