Markets
PEPE Price Hits All-Time High During GameStop (GME) Rally, What’s Next?
PEPE price rose to an all-time high of $0.000010 on May 14, 2024, as the resurgent GameStop (GME) rally saga spreads across the memecoin cryptocurrency markets.
The Gamestop saga resurfaces, catapulting PEPE to all-time highs
The GameStop saga of 2021 resurfaced when the GME stock price surged 40% on May 14.
Early market signals and Reddit comments suggest the rally is primarily driven by lingering nostalgia for the infamous 2021 rally, which saw institutional Bear traders suffer billions in liquidated short contracts while retail traders piled into long positions.
But this time, the bullish retail sentiment surrounding Gamestop (GME) price action has spread across the cryptocurrency markets, sparking a wave of memecoin mania. Interestingly, PEPE price, which has been declining sharply since early May 2024, has emerged as one of the most sought-after crypto memecoins amid the resurgent Gamestop rally.
As illustrated in the chart below, PEPE’s latest price surge on May 14th brought its growth performance for the month to 90%. And notably, the daily time peak of $0.000012 represents the all-time high for Ethereumthe largest memecoin project by market capitalization.
PEPE social media traction hits 40-day high
With Gamestop’s parabolic rally dominating social media and search engine trend charts, PEPE’s on-chain data vitals show a decidedly similar catalyst emerging in the memecoin markets this week.
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As a guide, the Santiment Social Volume Score chart below tracks the number of times a specific cryptocurrency is mentioned across major crypto media channels, including TelegramReddit, X (formerly Twitter), etc.
As seen above, the PEPE Social Volume Score hit a 40-day peak of 350 on May 14, surpassing last month’s high by more than 50%. Strategic investors often interpret social volume spikes during uptrends in prices as a leading indicator that the market is approaching the top.
Furthermore, historical data shows that the latest PEPE reached a peak social traction above 200 on April 1st and April 23rd, respectively. And curiously, on both occasions a rapid drop in prices followed.
Therefore, following historical trends, the PEPE social volume score that surpassed 350 on May 14, could be a harbinger of a major correction phase in the coming days.
However, with the Gamestop media hype still ongoing, there is a chance that bullish headwinds could push PEPE’s price to new highs, especially if GME continues to climb the top gainer charts.
PEPE Price Prediction: $0.000020 Rally Still in Play
At the time of publication on May 14, 2024, PEPE price was hovering above the $0.000010 mark, having recovered slightly from the daily time high of $0.000012. However, the Bollinger band indicator suggests that PEPE price may prepare for another bullish rally towards $0.00002 in the coming days.
As seen above, despite the slight correction on May 14, PEPE price is still holding above the Bollinger band of the upper limit at $0.000099. This confirms that the broader sentiment surrounding PEPE’s short-term market momentum is still predominantly bullish.
Furthermore, speaking to DLNews, Quinn Thompson, founder of Lekker Capital, also alluded to Gamestop’s impact on PEPE price action.
“Cryptocurrencies have been lacking in new retail traders throughout this journey. It makes sense that crypto memes will take an opportunity to hope” that retail trading is returning, because the brutality of the crypto winter hasn’t exactly helped participation retail,”
– Quinn Thompson, Founder Lekker Capital
On the bearish side, if the historic diverging pattern between social media euphoria and PEPE price action reoccurs, a reversal towards the 20-day simple moving average (SMA) level at $0.0000081 could be on the cards.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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