PEPE price is rallying, adding 10X in three months. At this pace, some analysts expect Pepecoin to flip Dogecoin as the most valuable meme coin – but is this grounded in reality?
Crypto can be a marvel to watch, especially if you are unexpectedly winning. Sometimes, “serious” projects, such as Iota, fail to gain immediate traction and fade to obscurity, only to be flipped by the less serious ones.
Dogecoin is a classic example.
Even though its developers have added utility, many observers consider Dogecoin a “joke” cryptocurrency and a leading meme coin. And there is no stopping the meme coin craze, at least looking at events so far in 2024.
Dogecoin remains the leader, with a market cap exceeding $21 billion and a position in the top 10. The total meme coin market cap is over $53 billion at spot rates, down just 2%.
While DOGE is the indisputable leader in terms of market cap, some analysts are vouching for PEPE, saying the meme coin is increasingly emerging as a potential contender to DOGE as the king of meme coins.
This position is mostly because of candlestick arrangement and valuation. Sharing a chart, the analyst said PEPE has been explosive this season, and besides this, Pepecoin is deflationary.
PEPE Price Is Rising: But Will It Realistically Flip Dogecoin?
There is some truth to the analyst’s claims. For one, there is no denying that PEPE price has been resilient, posting impressive performance in the last five months. To quantify, PEPE is up a massive 10X from February lows, outperforming even Bitcoin and Ethereum.
At the current valuation, PEPE has a market cap of around $4 billion, making it the 27th most valuable coinglobally.
Chart is looking sexy again, resume $PEPE only. pic.twitter.com/Bxq60JU2j5
— Backwards (@0xBackwards) May 20, 2024
It needs just to 5X and will overtake Dogecoin. While PEPE prices are at an uptrend and near all-time highs, a chartist is cautiously optimistic.
In a post on X, henotesthat the meme coin has found support at around the $0.00000464 level while resistance is at $0.00001161.
(PEPEUSDT)
Though this all-time high was reached this month, a bearish divergence pattern and a potential double-top pattern appear to be forming in the daily chart.
This means that prices could drop in the days ahead. Even with this outlook, some traders are taking long positions and speculating on another leg up.
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Whale Losses Over $717,000 In 15 Days, Will The Meme Coin Register New All-TimeHigh
Many traders (mostof themlate to the rally) have lost money.On-chain datashowsthat one PEPE whale lost over $717,000 in 15 days after opening two positions during this period. The trader bought the top and had to liquidate to cut losses.
Whether PEPE prices will recover from the current retracement remains to be seen. PEPE could recover if more tokens are burned.
A small portion of the Pepecoin token is taken from the circulating supply whenever it is moved, making it deflationary over time. There is, however, no guarantee that this will help prop up bulls.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital
