Meme Mania Returns with PEPE Coin Surging Amidst Revived GameStop Frenzy

Memecoin mania seems to be making a comeback, with the unexpected rally of GameStop (GME) stock and PEPE, the popular frog-themed memecoin. Here is a look into the reasons behind PEPE’s surge, with an exploration of the connection to the Gamestop phenomenon and an analysis of what the future might hold for this volatile cryptocurrency.

A Record-Breaking Rally for PEPE Coin

PEPE, reaching an all-time high of $0.00001118 on May 14, 2024, has entered uncharted territory. This exceeds any previous price point for the memecoin, while the price at the beginning of May 2024 was significantly lower. Throughout the month, PEPE has been on a tear, going through a growth surge of nearly 90%. This impressive performance makes it a top performer in the memecoin market, leaving many investors wondering what’s driving this sudden surge.

The Gamestop Connection

The recent price hike in PEPE corresponds with the dramatic rise of Gamestop stock. On May 14, GME experienced a rise of almost 100%, similar to events of the infamous 2021 meme stock frenzy. This appears to be driven by nostalgia for the 2021 phenomenon and renewed optimism from retail investors. Many remember how a wave of retail investors got together to buy Gamestop stock, causing its price to soar and causing significant losses for hedge funds that had bet against the company. This time around, it seems that some retail investors are looking to recapture that magic and are pouring money back into GameStop.

Interestingly, the bullish sentiment surrounding GameStop has spilled over into the crypto market and is attracting interest in memecoins like PEPE. 

Social Media Hype

The PEPE rally is accompanied by a significant increase in social media mentions. Data from Santiment shows a 40-day peak of 350 on May 14, exceeding the previous high by over 50%. This increase in online hype indicates greater interest and likely market froth. Everywhere you look on social media, there is discussion about PEPE, with some users hyping the coin’s potential and encouraging others to buy.

However, spikes in PEPE’s social media volume during price uptrends have often been followed by corrections. This raises concerns about a possible price dip in the coming days. Just because there is a lot of excitement online does not necessarily mean the price will continue to rise. In fact, it could be a sign that the market is becoming overheated and ripe for a correction.

However, the ongoing Gamestop media frenzy could counter this trend and drive PEPE to even higher highs. If Gamestop’s stock price continues to climb, it could start the memecoin craze again and bring even more attention to PEPE.

Final Thoughts

Despite a slight pullback from its daily peak, PEPE remains above the $0.000010 mark. Bollinger Band indicators, which are technical analysis tools used to assess volatility, suggest that the price may be set for another upswing and may reach $0.000020 in the near future. This suggests that some analysts believe there’s room for PEPE to grow further.

Market analysts like Quinn Thompson, Lekker Capital’s founder, believe GameStop’s rally has positively impacted PEPE. He suggests that the broader crypto market may be attracting new retail investors looking for opportunities after the recent crypto winter. These new investors, looking for the next big thing, might be drawn to PEPE due to its recent surge and its connection to the GameStop frenzy.

Jimi Pen

Jimi pen is a freelance journalist and Cryptocurrency expert who has completed her education from Vanier College, Quebec. She is originally from Switzerland and loves to travel in her free time. She has been associated with the cryptocurrency market since 4 years.

Related Articles

Back to top button