PEPE quickly broke into the top 100 coins by capitalization in 2023 and became one of the most popular memcoins. But what are his prospects?

HYIP and investments

The “hype meme token” PEPE, which refers us to the famous meme about the green frog, is gaining momentum. In April, a call by @pepecoineth appeared on Twitter: “Make memcoins great again,” a reference to the slogan of former US President Donald Trump. The project developers are convinced that dogs have lost their former relevance, clearly hinting at competitors in the face of DOGE and SHIB. Interestingly, in the first week of May, PEPE’s capitalization managed to exceed $1 billion.

fundamental factor

Although the creators refer us to Matt Fury’s illustrations from the Boys Club comic, which features the famous character, there are more serious technical features of the coin that investors and traders should take into account. So, the token was issued on Ethereum on the ERC-20 standard. The consensus algorithm is PoS, and the maximum supply is 420.690 trillion.

In general, nothing outstanding in comparison with the closest competitor in the face of SHIB, except that the maximum emission is declared as less. Otherwise, information about the beta version of Shibarium and plans to create a metaverse from the “dog” competitor PEPE do not speak in favor of the latter from the point of view of fundamental analysis. However, the coin is of clear interest as an object of speculation.

Technical analysis

It is too early to talk globally about any PEPE trends. It has been trading on major exchanges like Binance, OKX, and Bybit for less than a month. The only thing that can be noted so far is the strong volatility of the asset. For example, on Binance on the first day of trading, PEPE added almost 89%. The very next day, Memcoin lost almost 30% of its value, and on May 12 it dropped to its lowest point of $0.00000105, that is, more than 46% below the original price and 76% below the May 5 highs. In addition, the cost of PEPE during the day changes by at least 3% or more.

At the same time, if you look at the volumes, the growth on the first day was at a very small rate. What does it say? The fact that a small group of enthusiasts decided to stock up on a new memcoin. The excitement raised the price to heaven, but it corrected on the same day. Then the trading volumes increased, but there was no such demand for PEPE. This is confirmed by the fact that the coin is trading below the placement price. Although over the past 10 days of trading on Binance there were the same number of growth and fall sessions – 5 each, the overall result is a fall in the price of PEPE.

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Source: tradingview.com

Cost dynamics

What can be said for sure is that the value of an asset is primarily influenced not by fundamental, but by momentary factors, such as mentions in social networks by famous people. So, after the publication of a tweet by Elon Musk, in which PEPE appeared, the price of the asset instantly increased by 50%. The very mention of Musk referred to some amendments to the US constitution, in particular the right of citizens to have weapons.

The token also managed to acquire an army of ardent fans who took up arms against the Coinbase crypto exchange because the management regarded the meme with Pepe the frog as a “symbol of hatred” and considered the hobby for such coins to be “crazy”.

An interesting point of view is shared by crypto enthusiast Ben Armstrong, who is convinced that in the future, all memcoins “will cost zero.” At the same time, he himself continues to make money on trading, including trading in memcoins, adding that this reminds him of a “hot potato game”.

The dangers of investing in memcoins have also been warned in the past by Edward Snowden, who considers investing in SHIB and other “dog coins” risky.

Conclusion

The following factors speak in favor of possible growth:

  1. The coin has a significant capitalization, at the moment exceeding the amount of $1.6 billion,

  2. The coin has an army of fans and an active community,

  3. The coin is actively added to various trading platforms and centralized crypto exchanges, which potentially leads to an influx of new funds into the asset.

On the other hand, the following factors speak in favor of a negative scenario for PEPE:

  1. Extremely high volatility and short duration of active trading. Already, some investors have lost huge amounts of money on unsuccessful investments in PEPE due to the instability of the exchange rate. Famous precedent with a large investorwho lost $500,000.

  2. The absence of a serious fundamental background: the project does not have any new innovative technologies and solutions on the market that are different from other altcoins. The rise in the exchange rate is mainly due to speculative factors.

  3. From the point of view of technical analysis, the current trend can be assessed more as a downtrend. This is due to the high overbought at the initial time interval of trading and the gradual closing of positions after the hype.

This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.