Direct from the desk of Dane Williams.
–-
On yesterday’s top 5 meme coins that would have made you the most money last week blog post, I got 2 comments.
Both ignoring Swole Doge’s insanely impressive +136.9% gain and instead choosing to focus on PEPE.
I mean it has certainly rallied this week, but the rip wasn't quite as impressive as 1st place on the list.
Man, whatever that branding and marketing team have done, they’ve certainly done it well!
For those of you that haven’t been following the meme coin market, after opening with an initial surge in price that looked like it was going to continue forever, PEPE dumped.
…dumped HARD.
Today I take a look at why the PEPE meme coin is rallying again and what this could mean for you.
What does PEPE’s price action look like?
Bringing up the PEPE chart from TradingView says everything I need to say.
Huge rally on the initial meme coin euphoria bullshit, followed by dump city as the house of cards came tumbling down, down, down again.
But as we see the price of PEPE continuing to rise, we’ve gotta take a closer look at the factors driving this rally.
Nope, not all rallies are built the same.
You can’t really see it clearly in the daily chart above, but PEPE has managed to overcome multiple intraday resistance levels, defying any prevailing sell pressure coming from the overall market.
At the heart of PEPE's resurgence however, lies a unique set of circumstances within its own ecosystem.
When PEPE hit an all-time low (ATL), it experienced a severe lack of liquidity.
This scarcity of trading volume meant that even the tiniest influx of capital could set the stage for an upward trajectory.
So, where are these inflows of capital coming from you may ask?
It is plausible to attribute them to the developers who previously cashed out their "premines" at high levels by dumping on the unsuspecting victims they promoted the meme coin to.
By capitalising on their investments and with the assistance of the overall market recovery, these insiders may have triggered the recent PEPE rally.
However, it is important to note that this internal restructuring of capital within the PEPE ecosystem does not necessarily indicate a broad shift in market sentiment or value.
While the current surge is undoubtedly impressive, it’s most likely that PEPE is simply riding on the back of these unique dynamics.
Rather than reflecting a real change in technicals, fundamentals or any sort of broader market perception at all.
Should we trust PEPE’s rally?
Lol, well my humble opinion on this final PEPE verdict is of course not.
But this is a clown world where people put their hard earned money into things called meme coins braided as green frogs.
So hey, what the hell would I know?
Ultimately, while the recent surge may be impressive and capture the attention of those degens among us, please just be careful and approach this garbage with a healthy dose of scepticism.
Whatever you do, do not read my blog posts about meme coins and make trading decisions.
Just come and talk shit about them with me on Threads instead…
See you there.