What is PEPE?
PEPE, an Ethereum-based meme coin launched in April 2023, has quickly made a significant impact despite the anonymity of its creators. PEPE began trading on April 15, 2023, at a price near $0.00000000. Within just two weeks of its launch, PEPE entered the top 100 cryptocurrencies by market cap, currently ranking at number 70.
Source: IntoTheBlock
Since its inception, PEPE's market capitalization surpassed $1 billion in just 20 days, reflecting a staggering 7,000% surge in value within 17 days. This extraordinary rise has made a notable mark in the crypto meme coin industry.
The risk-based token has recently secured its top place as the most profitable meme coin. Whether the current rally is going to end in a major crush remains unknown. However, several indicators hint at a number of upcoming events for PEPE in June.
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PEPE price history
The PEPE coin employs a deflationary mechanism, burning a small percentage of tokens with each transaction to create scarcity and potentially increase the remaining tokens' value over time.
Source: IntoTheBlock
It uses a redistribution system where a portion of every transaction is shared among existing token holders, promoting user engagement and long-term investment.
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The price of PEPE has experienced significant fluctuations in a matter of 24 hours, including surges of over 40% and steep declines. The most notable downturn occurred in January 2024, when the coin lost nearly half of its value.
Source: IntoTheBlock
However, it embarked on a remarkable bull run in March, followed by a correction in March and April, and then gained momentum in May, defying the general crypto market trend.
The rally began in late April, gaining traction after PEPE surpassed the daily MA 50 at $0.000073. On May 27, the price reached an all-time high of $0.00001725, marking an impressive 88% increase since the SEC approved the Ether ETF filings on May 20.
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The frog-themed coin has been good to its holders in the past month. Currently, 91.59% of PEPE addresses, representing 227,990 holders, are in profit. Additionally, 5.32% of addresses, or 13,250 holders, are at breakeven with the current price around $0.0000144 per token.
As of late May 2024, the chart shows what seems to be a correction on a monthly scale. Whether the rally continues in June remains the biggest question.
PEPE price prediction
Pepe is now ranked as the 28th cryptocurrency by market cap on CoinGecko and has secured the 20th spot on CoinMarketCap with a current market cap of $6.16 billion as of June 1.
Over the past month, PEPE has surged by 107%, outperforming the overall market and the average meme coin. This performance has pushed PEPE above its 50, 100 and 200-day EMAs, highlighting its strong bullish trend.
If we look at PEPE market value to realized price ratio, we can guess the potential "true" value of PEPE.
Source: IntoTheBlock
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Despite its impressive gains, meme coins, including PEPE, are notoriously volatile. Many analysts predict a likely further price correction. For instance, Ali Martinez has noted bearish signals, pointing out that PEPE's daily RSI has surpassed 70, an overbought level that often precedes price corrections or consolidations.
.@TheRoaringKitty's return has the crypto community buzzing about #memecoins! While some #altcoins may thrive, others might not. $PEPE, in particular, seems poised for a retrace.The TD Sequential shows two sell signals on the #PEPE 3-day chart: an aggressive 13 and a green nine… pic.twitter.com/9spYZnQ1LO
— Ali (@ali_charts) May 16, 2024
When the average RSI value surpasses 70, this increases the risk of a sell-off. However, it is important to note that the market can remain overbought for extended periods, with prices continuing to rise.
According to the RSI heat map, PEPE currently sits at the "strong" level, with a potential "sell" signal. IntoTheBlock data also indicates a bearish sentiment as June approaches.
Another important indicator is the historic correlation with the BTC price. As shown in the chart below, PEPE has seen mostly negative correlation with both Bitcoin and Ethereum within a year since its launch.
The likelihood of both Ethereum and Bitcoin rallies remain high in June, which poses the question of whether PEPE trajectory will change its course in the next few weeks.
In any case, PEPE is regarded as one of the most volatile coins on the market. As a typical high-yield asset, its price is extremely speculative with no fundamentals to watch. With that in mind, the beginning of June is set to be an important time for PEPE's foreseeable future.