- PEPE coin has reached a significant milestone in this bull cycle, posting a new ATH of $0.00002524.
- However, an ongoing market shift could threaten its momentum, limiting further gains.
Compared to the last cycle, the nature of capital flowing out of Bitcoin [BTC] has shifted. Unlike crypto exchange users, institutional investors and ETF buyers seem uninterested in rotating their assets into memecoins, leaving them at the bottom of the chart.
Pepe [PEPE] coin has also struggled, posting a nearly 7% weekly decline. While this may seem minor, the contrast in capital influx is stark when compared to altcoins.
Yet, this may just be a ‘temporary’ blip, not a permanent trend. After all, PEPE coin hit key milestones in the post-election cycle, smashing through resistance at $0.000020 and reaching an all-time high of $0.00002524 just two weeks ago.
A correction was inevitable as trading volume surged to a record 214 trillion, signaling an overheated market.
As a result, two consecutive weeks of downtrend have positioned PEPE coin below its earlier resistance, now valued at $0.00001923 (at the time of writing).
Is PEPE coin ready to break another ATH by December?
The MACD crossover on the daily chart has turned bearish, signaling further downside. This suggests that a bottom has not yet formed, making a rebound before the end of this month less likely.
December, therefore, could set the stage for PEPE to break past $0.00002600. However, it won’t be an easy feat, given the extreme volatility expected as bulls aim to push BTC above $100K before the end of Q4.
As mentioned earlier, this cycle has solidified altcoins as a superior asset class. A Bitcoin bull run, therefore, is likely to push memecoins toward previous resistance levels, though reaching an all-time high may prove difficult.
Interestingly, whales began accumulating PEPE coin a day before it hit its ATH, with an astounding 4.1 trillion tokens being withdrawn.
Source : IntoTheBlock
However, since then, whales have started offloading, keeping the memecoin on a downtrend. This impact is understandable, as memecoins rely heavily on large HODLers to break key resistance points.
Meanwhile, spot traders have reacted differently. Over the past three days, PEPE coin has posted a ‘slight’ uptick, with daily gains exceeding 2%, keeping the price within the $0.0000180–$0.0000200 band.
This anomaly underscores the influence whales wield in dictating PEPE’s price action.
Therefore, to reach a new ATH before the end of this cycle, monitoring whale activity will be crucial in pinpointing where the next local bottom forms.
That said, the path forward is far from smooth
A historical pattern identified by AMBCrypto underscores the challenges ahead for the memecoin community as altcoins continue gaining notable traction.
Typically, as Bitcoin nears a psychologically significant price point, investors shift focus to high-cap tokens, seeking affordability to minimize losses and maximize returns.
Until the last cycle, memecoins were the primary beneficiaries of this strategy, posting higher highs as BTC hit market tops.
For instance, in mid-May, PEPE coin saw a week of consecutive green candlesticks, with daily gains of 20%, coinciding with a period when Bitcoin faced rejection at $70K after hitting an ATH of $73K two months earlier.
Source : TradingView
In simple terms, PEPE became a strong contender for investors looking to re-allocate profits from Bitcoin’s bull run, helping it post a new ATH of $0.00001673.
However, this cycle has been different. While BTC surged to new highs, altcoins have held PEPE back from repeating its past success. Just a week before BTC hit an ATH of $99K, PEPE had already started its downward slide, with weak hands getting shaken out.
Without bullish backing from whales, PEPE’s price couldn’t maintain its momentum and instead retraced.
Read Pepe [PEPE] Price Prediction 2024-2025
Therefore, the path forward for PEPE coin is far from smooth. Unless this trend reverses, memecoins will remain at the mercy of large HODLers for support – who will only intervene if investors begin viewing memecoins as a legitimate asset class, shifting their focus away from altcoins.
Without this shift, while a BTC bull run past $100K could spark a surge in PEPE’s price, reaching a new ATH might still remain elusive.
