- PEPE Token restores $5 billion market capitalization after a two-week hiatus.
- Topping $3B in volume, PEPE outshined major altcoins like BNB, SOL, and XRP.
- Despite retracing over 50% from an all-time peak, traders expect WIF to be above $6.
Amidst a market-wide rebound rally, two major-cap meme coins emerged as the top gainers of the day. Pepe (PEPE) and Dogwifhat (WIF) stunned crypto this Tuesday by pulling off an over 20% daily upswing each.
PEPE Jumps Back into the Limelight
Leading the pack with 27% gains, PEPE surged back into the TOP 25 by global market capitalization. The bullish breakout for PEPE on July 16, 2024, has cleaned up the mess left by the bears since the beginning of July. PEPE slipped below the $0.00001 support level on July 4, 2024.
Bouncing back from a double bottom pattern at $0.000008 twice in July, PEPE holders and crypto analysts saw the range between $0.000008 to $0.00001 as a pivotal point for the toad-themed coin’s future price trajectory. This was mentioned by crypto analyst Crypto Mechanic, who deemed PEPE’s weekly close in that range a bearish sign.
Pepe started off the week by successfully breaching the “broken zone” specified by the crypto analyst. Marking a daily peak at $0.00001244, PEPE is now on the verge of entering a new support bubble between $0.000012 and $0.000014, which would notably relieve the selling stress caused by the previous downturn.
The aforementioned support bubble holds 8T PEPE coins among 12.46K crypto wallets, which is far less than the current cluster of 44.31T PEPE spread across 22.51K crypto addresses.
According to CoinPaprika, the current gap between PEPE sales and executed bids is $1.3 million on the selling side. However, with 79% of current PEPE holders already at profit, a close above would further raise PEPE’s chances of climbing back to its all-time high of $0.00001717, set on May 27, 2024.
PEPE’s price has a high correlation to the Relative Strength Index (RSI), which causes a technical phenomenon known as bearish divergence. Spotted by engineer and crypto trader Alexander The Hodler, the bearish divergence could imply a hefty market correction in case bulls lose the steering wheel.
Analysts Are Painting a Bright Picture for WIF
Meanwhile, Solana’s (SOL) Dogwifhat (WIF) bounced back to $2.25, a critical milestone for the token. After a month of trading in a descending parallel channel, WIF did not cut the crypto bears any slack, resulting in $2.11 million short positions liquidated in the latest 24-hour window.
Measured by the long versus short ratio, crypto traders on Derivatives markets expressed more optimism towards PEPE, rather than WIF. PEPE’s 1.0169 ratio speaks volumes against WIF’s 0.9654 ratio, concluding that PEPE traders are less inclined to short-sell the token.
As WIF successfully broke the shackles and completed the shakeout phase, crypto analysts are expecting WIF to find strength to claim a new all-time peak. Analyst Javon Marks sees $7.30 as Dogwifhat’s next goal if WIF’s trend continuation holds after breaking out of the bullish pennant.
Other analysts, such as World Of Charts, described a bullish scenario in which WIF sustains above $3. The descending channel resistance is seen as a halfway point to hitting $6, a price milestone WIF has yet to see. As of press time, according to CoinGecko, WIF is changing hands at $2.22.
On the Flipside
- Despite a similar price performance, Pepe dominated the cumulative trading volumes on both Spot and Derivatives crypto markets.
- To compare, PEPE topped over $3 billion in Spot volume, surpassing bigger names like XRP (XRP), BNB (BNB), Dogecoin (DOGE), & Polygon (MATIC).
Why This Matters
Meme coins often lead the bounce-back rallies, as meme currencies are often portrayed as leveraged plays on the parenting blockchains.
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