$PEPE Slips 3% After 84% Surge – Will Meme-Coin Mania Push It Higher?

After an 84% in three days, $PEPE rocketed to a $5.9 billion cap, yet by May 13 it slipped 2.9%, hinting profit-takers may be wresting the wheel from believers in crypto’s third-largest memecoin.

$PEPE, one of the top-performing ERC-20 tokens, also remained up 92.65% over the past month and 49.52% year-to-date. These gains have propelled it into the top 25 cryptocurrencies by market capitalization.

Memecoin Season Heats Up: $PEPE Trails Only $SHIB and $DOGE

Within the memecoin space, $PEPE holds its ground as the third-largest by market cap, trailing only Dogecoin ($DOGE) and Shiba Inu ($SHIB).

$PEPE also ranks as the third-best-performing memecoin this week, following $WIF and $PNUT.

This continued interest reinforces a familiar pattern: when trading volume returns to the crypto market, memecoins often steal the spotlight, with many traders favoring them over traditional altcoins for their volatility and short-term trading potential.

For context, the overall memecoin market capitalization stood at $55 billion at the beginning of May. Just 12 days later, it surged over 45%, reaching $72.2 billion.

This broader rally is clearly reflected in $PEPE’s performance, as on March 11, its market cap was around $2.4 billion.

A month later, surged over 120%, driven partly by Ethereum’s recent rebound, climbing nearly 60% from a low of $1,380 to above $2,500. ERC-20 tokens like $PEPE often benefit from Ethereum’s bullish momentum.

Other Ethereum-based tokens, such as $NEIRO, which gained 50% in the past 24 hours, also capitalize on this ecosystem-wide liquidity boost.

Is $PEPE Cooling Off or Warming Up for Another Rally?

Sentiment around $PEPE is mixed, as some traders remain bullish, while others anticipate a cooldown. One trader on Hyperliquid opened a $2.3 million long position on $PEPE with 3x leverage.

Meanwhile, crypto analyst @CryptoKaleo suggested that the memecoin could consolidate before a potential surge toward a conservative market cap target between $10 billion and $20 billion.

However, derivatives data hints at more than just short-term profit-taking. In the past 24 hours, $PEPE’s trading volume has dropped by over 20%, and open interest has declined by 11.42%.

As a result, more than $4.71 million in long positions have been liquidated. On the other hand, on-chain metrics tell a different story.

$PEPE’s holder count has climbed to over 432,000, suggesting continued retail interest and support behind the token. Additionally, some investors appear to be buying the dip and betting on another leg higher.

Technical Analysis: Can $PEPE Break Through $0.0000159 Resistance?

Technical analysis suggests that if $PEPE breaks past the immediate resistance and closes a daily candle above $0.0000159, it could gain another 31%, potentially reaching the next resistance around $0.00001946 to $0.00002000.

The recent breakout from a symmetrical triangle pattern around the $0.00000800 level has pushed $PEPE to local highs.

However, one cautionary indicator is the Relative Strength Index (RSI), which is elevated at 84.16, indicating that the asset is overbought in the short term.

Such conditions often precede brief consolidation periods, typically healthy during strong upward trends.

A pullback to the breakout zone between $0.00001050 and $0.00001200 could present a favorable re-entry opportunity for bullish traders, provided buying pressure remains intact.

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