Bitcoin [BTC] has been the most important cryptocurrency for a long time. The appearance of Pepe [PEPE], a meme coin, however, marks a major change. Pepe’s price going through the roof, even higher than Bitcoin’s, is a major event linked to the “supercycle” meme coin story.
The first half of May has been crazy for both Bitcoin and Pepe. Bitcoin has only gained 2%, while Pepe has gained a crazy +65%. In just two days, Pepe’s stock price went through the roof at the same time that GameStop stock (GME) did.
It made Pepe reach a new all-time high (ATH) of $0.00001146.But as market excitement grips Pepe holders, doubts start to rise about the long-term viability of its upward trend.
Bitcoin’s Market Complexity Revealed
A close look at the charts shows that the picture is not as simple as it seems. Even though prices are rising to new highs, there are signs that traders, including “whales,” are getting out. Two price rejections at the range-high of an ascending channel show this.
Still, people are optimistic because the market structure is still strong. This could mean that the price goes up another 21% to $0.000013. But this hope is tempered by the fear of a pullback if more investors decide to take profits. The price could go back to key support levels, which are shown by the channel’s mid-range and range-low.
There is also a lot of uncertainty about the levels of liquidation. If things go badly, Pepe could drop by 25%, converge at the $0.08 area that has been marked as a key magnetic area. This possible drop shows how unstable meme coins are and how dangerous it is to try to make currency through speculation.
Markets are still mostly positive, even though there are some red flags. The Coinglass Long/Short Ratio data shows this. It shows that since the beginning of May, more and more buyers have been buying Pepe. As long as people feel good, the number of people who want to buy something could go up by 20%.
Pepe coin is still going through a crazy time in the meme coin supercycle. This makes buyers think about the risks and benefits of dealing in a market that is so unstable. People are feeling good, so prices are at all-time highs. Traders should be careful, though, because the mood of the market can change quickly, which could lead to significant drops.
