Memecoin PEPE experienced a 35% surge on May 8, pushing past the $0.000010 psychological barrier and becoming the sixth most-traded cryptocurrency globally, excluding stablecoins.

The rally coincided with Bitcoin rising above the $100,000 mark, setting a positive tone for memecoins. PEPE is currently trading at around $0.00001091, levels last seen on February 4, 2024.

What makes this surge particularly interesting is that PEPE has outpaced Dogecoin in daily trading volume, becoming the most actively traded memecoin during this period.

Several factors are driving this impressive price action. One major catalyst is whale accumulation. According to data from Lookonchain, a prominent crypto investor with $147 million in crypto assets has been actively buying PEPE tokens.

This whale withdrew 1.5 trillion PEPE from Binance on April 30 and recently added 500 billion more tokens, bringing their total holdings to 2 trillion PEPE tokens.

This accumulation represents approximately $4.36 million in value, showcasing strong confidence in PEPE’s long-term prospects from major investors.

Technical Indicators Point Upward

The technical picture for PEPE is also bullish. The price rally began with a long-legged doji candle on May 6, completing what traders call a morning star pattern. This reversal formation led to the subsequent 35% price jump on May 8.

PEPE has now crossed above its 200-day Exponential Moving Average (EMA), which typically signals an extended uptrend. The positive crossover in the MACD and signal lines further supports this optimistic outlook.

Analysts note that PEPE recently broke out of a Descending Broadening Wedge pattern. This bullish signal confirms a shift in momentum that could lead to a 120-140% rally in the mid-term.

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Some market analysts project even more dramatic gains if the bullish momentum continues. In an optimistic scenario where the market remains bullish and PEPE maintains its uptrend, some predict gains exceeding 1,200%, with a price target of $0,008 within the next bullish cycle.

This would represent a 10x increase from current levels, though such projections should be viewed with appropriate caution given the volatile nature of memecoins.

PEPE is currently experiencing a small pullback with a 1.84% intraday decrease, which many traders view as a normal breather after such a rapid ascent.

The most recent data shows PEPE trading at $0.00001124, maintaining most of its gains from the recent rally as traders look toward the next potential price targets.