PEPE Rebound Drives Classic Meme Rally, FLOKI, PENGU, BONK Surge Over 15%

PEPE, the meme coin inspired by the Pepe the Frog internet meme, surged nearly 26% on January 2, 2026, as renewed retail interest and bullish forecasts lifted sentiment across the meme coin sector. The rally brought PEPE’s 24-hour trading volume to over $800 million, the highest level in a month.

The move followed a bold prediction by prominent trader James Wynn, who suggested that PEPE could achieve a market cap of $69 billion by the end of 2026. Wynn, known for his prior successful bets on PEPE, emphasized the coin's strong social metrics as a key driver.

Retail demand for PEPE has grown steadily, with Robinhood users holding 8.3% of the token's total supply, according to recent data. This suggests retail traders are increasingly viewing PEPE as a long-term holding rather than a speculative trade.

Why Did This Happen?

James Wynn's prediction played a pivotal role in triggering the rally. He compared PEPE's potential to Shiba Inu (SHIB), which had surged 11.7x during the previous altcoin cycle. Wynn emphasized that PEPE could outperform SHIB due to stronger social engagement and brand recognition.

The rally was also supported by social media activity. The official PEPE account posted a message on January 1 that read, “We ride at dawn”, which quickly gained traction on platforms like X and contributed to growing confidence in the coin.

How Did Markets React?

The PEPE rally sparked broader enthusiasm for meme coins, with other tokens like FLOKI and BONK also seeing significant gains. Floki (FLOKI) rebounded by 10%, while BONK surged over 15% in the same period.

Short traders in the PEPE market were also caught off guard. Over $2.65 million in short positions were liquidated in the 24 hours following the price jump. This added extra upward pressure to the coin's price trajectory.

What Are Analysts Watching Next?

Analysts remain cautious, noting that most meme coins are still far below their 2025 highs. Despite the recent rally, PEPE's price remains nearly 70% below its all-time high. CryptoQuant data also shows that meme coin dominance in the altcoin market remains at a historically low level.

Technical analysts are watching key resistance levels for PEPE. The coin's next immediate resistance is around $0.0000056, which aligns with the 23.6% Fibonacci retracement level. A successful breakout past that level could target $0.0000074.

While the PEPE rally has reignited hopes of a broader meme coin season, market observers warn that the sector remains highly speculative. Volatility and liquidity concerns persist, especially given the broader crypto market's ongoing consolidation. Investors are advised to closely monitor Bitcoin's performance and macroeconomic indicators, as these often drive risk-on sentiment in the altcoin space. For now, meme coins like PEPE continue to attract attention, but their long-term success will depend on broader market conditions and continued retail demand.