Pepe (PEPE) is up 3% on the daily chart after Elon Musk posted a meme of a frog smoking on X. Currently, the meme coin is outperforming the top ten crypto projects by market cap on the daily chart. On the other hand, Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are up 0.4%, 1.1%, and 0.9%, respectively, in the same time frame.
Will PEPE break through?
While the frog-themed memecoin is green on the daily chart, it is still trading in the red zone on other timeframes. PEPE is down 15.6% on the weekly chart, 11% on the 14-day chart, 18.4% on a month-over-month basis, and 10.7% since June 2024.
Elon Musk's social media posts often trigger rallies in the cryptocurrency market. In particular, his posts about Dogecoin (DOGE) have triggered sporadic rallies in the meme coin. Musk may have shared the PEPE meme because his SpaceX Starship prototype suffered a setback during a test. The rocket erupted in a fireball during a test.
PEPE is likely to face a pullback soon. Musk's meme on X is simply not enough to support the continued rise of memecoin. This is not the first time Musk has used the PEPE image on X. Previously, he used the warrior image of Pepe the Frog as a display picture.
Cryptocurrencies continue to fall
The cryptocurrency market has struggled to gain momentum over the past few weeks. Global geopolitical tensions and trade wars have led to a significant drop in investor confidence. The escalation of the Israel-Iran conflict has also shaken global investors. The Federal Reserve also decided to keep interest rates unchanged after the recent Federal Open Market Committee (FOMC) meeting.
These developments have led to a massive outflow of funds from the cryptocurrency market. Risk assets have been particularly hit. As a meme coin, PEPE carries a greater risk than other cryptocurrencies. Until global tensions are more stable and certain, the coin is likely to continue to have strong momentum. In addition, investor sentiment also needs to improve significantly for the meme coin to truly break out.
