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PEPE price soared to an all-time high of $0.000010 on May 14, 2024 as the resurgent GameStop (GME) rally saga bleeds into the crypto memecoin markets.
Gamestop Saga Resurfaces, Catapulting PEPE to All-Time High
The GameStop saga of 2021 has resurfaced as the GME stock price surged by 40% on May 14.
Early market signals and Reddit comments suggest that the rally is mainly driven by lingering nostalgia from the infamous rally in 2021, which saw institutional Bear traders suffer billions in liquidated Short contracts as retail traders piled on Long positions.
But this time, the retail bullish sentiment surrounding Gamestop (GME) price action has bled into the crypto markets, sparking a wave of memecoin craze. Interestingly, PEPE price, which has been on a tear since the start of May 2024, has emerged as one of the most sought-after crypto memecoins amid the resurgent Gamestop rally.
As depicted in the chart below, PEPE’s latest price surge on May 14, brings it growth performance for the month to the 90% mark. And notably, the $0.000012 daily timeframe peak represents an all-time high for Ethereum‘s largest memecoin project by market capitalization.
PEPE Social Media Traction Surges to 40-Day Peak
With Gamestop’s parabolic rally dominating social media and search engine trends tables, vital PEPE’s on-chain data metrics show a starkly similar catalyst emerging within the memecoin markets this week.
Indicatively, Santiment’s Social Volume score chart below tracks the number of times a specific cryptocurrency is mentioned across relevant crypto media channels, including Telegram, Reddit, X (formerly Twitter), etc.
As seen above, PEPE Social Volume score has reached 40-day peak of 350 on May 14, outstripping last month’s high by over 50%. Strategic investors often interpret spikes in social volume during price uptrends as a prime indicator that the is market is nearing the top.
More so, historical data shows that PEPE last hit a peak social traction score above 200 on April 1 and April 23, respectively. And curiously, a rapid price dip followed on both occasions.
Hence, going by historical trends PEPE social volume score crossing 350 on May 14, could be a precursor to a major correction phase in the coming days.
However, with Gamestop media rave still unfolding, there’s a chance that the bullish headwinds could drive PEPE price to new peaks, especially if GME keeps racing up the top gainers’ charts.
PEPE Price Forecast: $0.000020 Rally Still in Play
PEPE price is hovering above the $0.000010 mark at the time of publication on May 14, 2024, having retraced mildly from the daily timeframe peak of $0.000012. However, the Bollinger band indicator suggests that the PEPE price could be setting up for another bullish upswing towards $0.00002 in the coming days.
As seen above, despite the mild correction on May 14, the PEPE price is still holding up above the upper-limit Bollinger band at $0.000099. This confirms that the broader sentiment surrounding PEPE short-term market momentum is still dominantly bullish.
Furthermore, speaking to DLNews, Quinn Thompson, founder of Lekker Capital, also alluded to Gamestop’s impact on PEPE price action.
“Crypto has been lacking new retail entrants this whole way up, It makes sense for crypto memes to catch a bid on hopes” that retail is coming back, because the brutality of the crypto winter hasn’t exactly helped retail participation,”
– Quinn Thompson, Founder Lekker capital
On a bearish note, if the historical divergent pattern between Social media euphoria and PEPE price action reoccurs, a reversal toward the 20-day Simple moving average (SMA) level at $0.0000081 could be on the cards.