Will PEPE Continue to Rally in June?

What is PEPE?

Launched in April 2023, PEPE is an Ethereum-based meme coin that has quickly gained traction despite its anonymous creators. Trading began on April 15, 2023, at approximately $0.00000000. Within two weeks, PEPE entered the top 100 cryptocurrencies by market capitalization, currently ranked at number 70.

Source: IntoTheBlock

PEPE's market cap surpassed $1 billion in just 20 days, representing a substantial 7,000% increase in value within 17 days. This growth has significantly impacted the crypto meme coin industry.

The risk-based token has emerged as the most profitable meme coin to date. While the long-term trajectory is uncertain, several indicators suggest upcoming developments for PEPE in June.

PEPE Price History

PEPE employs a deflationary mechanism, reducing the token supply with each transaction. This scarcity may contribute to the potential appreciation of remaining tokens.

Source: IntoTheBlock

A redistribution system shares a portion of transaction fees among token holders, fostering engagement and long-term holding.

PEPE's price has experienced significant volatility, including spikes over 40% and sharp dips. A notable decline occurred in January 2024, losing nearly half its value.

Source: IntoTheBlock

However, the coin embarked on a remarkable bull run in March, followed by corrections in March and April. It then gained momentum in May, defying the broader crypto market trend.

The rally commenced in late April, accelerated after surpassing the daily MA 50 at $0.000073, and reached an all-time high of $0.00001725 on May 27. This represented an impressive 88% increase since the SEC approved Ether ETF filings on May 20.

The past month has been favorable for PEPE holders. As of late May 2024, approximately 91.59% of addresses (227,990 holders) are in profit, while 5.32% (13,250 holders) are at breakeven at the current price of $0.0000144 per token.

However, a correction may be underway on a monthly scale in late May 2024. Whether the rally will continue in June remains to be seen.

PEPE Price Prediction

PEPE ranks 28th by market cap on CoinGecko and 20th on CoinMarketCap as of June 1, with a current market cap of $6.16 billion.

Source: IntoTheBlock

Over the past month, PEPE has surged by 107%, outperforming the broader market and average meme coin. This has driven PEPE above its 50, 100, and 200-day EMAs, indicating a bullish trend.

Despite strong gains, meme coins like PEPE are known for their volatility. Many analysts anticipate a potential price correction. For example, Ali Martinez has identified bearish signals, noting that PEPE's daily RSI has exceeded 70, an overbought level that often precedes price adjustments or consolidation.

Source: Twitter

When the average RSI value exceeds 70, it increases the likelihood of a sell-off. However, the market can remain overbought for extended periods, with prices continuing to rise.

According to the RSI heat map, PEPE currently holds a "strong" position with a potential "sell" signal. IntoTheBlock data also indicates a bearish outlook heading into June.

Source: IntoTheBlock

Another significant factor is PEPE's historical correlation with BTC prices. As depicted in the chart below, PEPE has exhibited a predominantly negative correlation with both Bitcoin and Ethereum since its inception.