- PEPE token regains $5 billion market cap after two-week hiatus
- With a trading volume of over $3 billion, PEPE has garnered attention by outpacing major altcoins such as BNB, SOL, and XRP.
- Despite falling more than 50% from its highs, traders expect WIF to remain above $6.
Amid the market-wide rally, two major market cap meme coins were among the biggest gainers of the day. Pepe (PEPE) and Dogwifhat (WIF) surprised cryptocurrencies this Tuesday with daily gains of over 20% each.
PEPE is back in the spotlight
PEPE led the way with a 27% gain, surging back into the top 25 global market cap. The bullish breakout of PEPE on July 16, 2024 cleared up the chaos left by the bears since early July. PEPE broke below the $0.00001 support level on July 4, 2024.
Having bounced from a double bottom pattern at $0.000008 twice in July, PEPE holders and crypto analysts see the range between $0.000008 and $0.00001 as the focal point of the future price trajectory of the toad-themed coin. This was noted by crypto analyst Crypto Mechanic, who viewed PEPE’s weekly close in that range as a bearish signal.
Pepe started the week successfully breaking out of the “broken zone” as designated by crypto analysts. Having hit a daily high of $0.00001244, PEPE is now on the verge of entering a new support bubble between $0.000012 and $0.000014, which would significantly alleviate the selling pressure from the previous decline.
The aforementioned support bubble holds 8T PEPE coins among 12.46K cryptocurrency wallets, which is significantly less than the current cluster of 44.31T PEPE distributed across 22.51K cryptocurrency addresses.
According to CoinPaprika, the current gap between PEPE sells and executed bids is $1.3 million on the sell side. However, with 79% of current PEPE holders already in profit, a close above that would make it more likely that PEPE would rally back to its all-time high of $0.00001717, which was reached on May 27, 2024.
The price of PEPE is highly correlated with the RSI (Relative Strength Index), which creates a technical phenomenon known as a bearish divergence. Discovered by engineer and cryptocurrency trader Alexander The Hodler, a bearish divergence can mean a massive market correction if the bulls lose control of the steering wheel.
Analysts paint a bright picture for WIF
Meanwhile, Solana’s (SOL) Dogwhipheart (WIF) bounced to $2.25, a significant milestone for the token. After trading in a descending parallel channel for a month, WIF has not let up on the crypto bears, resulting in $2.11 million in short positions being liquidated in the last 24 hours.
When measured by the long-to-short ratio, cryptocurrency traders in the derivatives market are more bullish on PEPE than on WIF. The PEPE ratio of 1.0169 speaks volumes compared to the WIF ratio of 0.9654, concluding that PEPE traders are less willing to short the token.
As WIF successfully breaks the chains and completes the shaking phase, crypto analysts expect WIF to find the strength to make a new all-time high. Analyst Javon Marks sees Dogwifhat’s next target at $7.30 if WIF’s trend continuation continues after the bullish pennant.
Other analysts, such as World Of Charts, have outlined a bullish scenario where WIF holds above $3. The descending channel resistance is seen as the midpoint to reach $6, a price milestone that WIF has yet to see. According to CoinGecko, at the time of writing, WIF is changing hands at $2.22.
On the other side
- Despite similar price performance, Pepe dominated the cumulative trading volume in both spot and derivatives cryptocurrency markets.
- By comparison, PEPE has surpassed $3 billion in spot trading volume, surpassing major coins such as XRP (XRP), BNB (BNB), Dogecoin (DOGE), and Polygon (MATIC).
Why this matters
Meme coins often lead bullish rallies, as meme currencies are often portrayed as leveraged plays on their parent blockchains.
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