PEPE surged 16%, with the 'cup and handle' pattern becoming a key reversal signal
PEPE once again captures the spotlight in the crypto world, surging 16% in a single day and successfully forming a 'cup and handle' pattern that technical analysts are focusing on, breaking the previous adjustment rhythm. As prices rebound, a large number of speculators quickly pour in, driving spot trading volume to nearly $4 billion - a figure that even surpasses the long-established meme coin DOGE's $2.84 billion.
On the daily trading volume leaderboard, PEPE ranks fifth across the network, triggering a wave of FOMO.
Explosive growth in the derivatives market, with PEPE contracts surging 280%
PEPE is not only firing on all cylinders in the spot market, but its smart contract derivatives trading volume has also soared to $5.74 billion, with a daily increase of up to 280%. Meanwhile, Dogecoin still dominates the contract market (trading volume $6.6 billion), but PEPE's growth rate is undoubtedly more astonishing.
Data shows that although DOGE shorts faced liquidation losses of $14 million, PEPE shorts were not spared either, suffering losses of nearly $11 million, indicating that the battle between bulls and bears is exceptionally fierce.
Whales are frantically buying up, holding 1.5 trillion PEPE in their hands.
According to LookOnChain data, a large holder recently bought 500 billion PEPE twice in a row, totaling over $8.9 million. Currently, this whale holds approximately 2 trillion PEPE, valued at a market cap of up to $17.42 million based on the day's price.
These large purchases may drive short-term gains, but they also pose potential risks for a later sell-off.
On-chain indicators are diverging, and investors need to be wary of momentum shifts.
From a technical perspective, the Chaikin Money Flow (CMF) for PEPE/USDT turned positive on May 6, indicating that funds are flowing back into this cryptocurrency.
However, the network growth rate is declining, and the number of new wallet addresses is on a downward trend. This indicates that the current rise is more likely driven by internal capital rotation rather than 'new blood' from new investors.
Total supply reaches 420 trillion, structural risks cannot be ignored
PEPE's total supply is massive, reaching 420 trillion coins. Even a small portion of tokens entering exchanges could create significant selling pressure on the market. In contrast, tokens with scarce supply are more likely to achieve steady increases under demand pull, while PEPE could experience violent fluctuations at any time.
Though PEPE's increase this month has exceeded 112%, its highly concentrated holding structure and massive total token supply mean that the risk of a pullback cannot be ignored.
Bitcoin breaks above $104,000, igniting the 'meme coin effect'?
As Bitcoin strongly breaks through the $104,000 mark, retail FOMO sentiment spreads quickly, beginning to shift towards the secondary market, with PEPE being one of the beneficiaries. If BTC maintains its strength, meme coins like PEPE are likely to continue riding the wave of sentiment; conversely, if Bitcoin's momentum wanes, PEPE may struggle to stand alone.
