- Summary:
- PEPE price has risen by more than 1,000 percent year-to-date. Could the current rally see it replicate Shiba Inu's 2021 explosion?
PEPE price extended its uptrend on Tuesday, gaining 8.9 percent to trade at $0.0000141 at the time of writing. With that, the meme coin’s gains in the last week stand at 80 percent and year-to-date gains at 1,000 percent. However, its latest gains are a result of a market-wide rally spearheaded by Bitcoin, whose price hit the $88k mark on Tuesday.
Meme coins have historically outperformed Bitcoin and altcoin during market rallies. In addition, they typically cost a small fraction of a dollar, making them affordable to a larger market. Their biggest attraction if the extreme volatility, which offers a good risk-reward ratio for this asset class. In the 2021 rally, Shiba Inu churned out millionaires after rising by more than 1,000,0000%, and crypto enthusisasts have often hoped that PEPE could replicate that success.
These factors raise the prospect of a stronger upside for PEPE price if the current market sentiment stays in play. The market is still trading on the confidence created by Donald Trump’s election win last week, which is seen as a win for the digital assets economy.
On the downside, however, PEPE’s position as one of the biggest gainers in the current market rally also predisposes it to a more vigorous selloff when traders start taking profit. Also, unlike Dogecoin (DOGE) and Shiba Inu (SHIB), PEPE has done poorly in attracting institutional adoption. That is attributable to its extreme volatility, which portrays it as unstable.
PEPE price prediction
The momentum on PEPE price favours the continuation of the upside above the 0.0000142 pivot mark. The upward action will likely meet the first resistance at 0.0000146. However, a stronger momentum will break above that level and potentially test 0.0000148.
On the other hand, moving below 0.0000142 will put the sellers in charge. If that happens, initial support is likely to come at 0.0000140. However, if the sellers extend their control, the price could break below that level and invalidate the upside narrative. Also, the decline could send PEPEUSD lower to test 0.0000137.
