Table of Contents
- Why Is Pepe Coin Rallying In May?
- Pepe Coin Price Prediction - How High Can It Go In June?
Pepe (PEPE) continues its meteoric ascent, reaching a new all-time high of $0.00001717 before a marginal pullback.
The PEPE price is currently trading at $0.000017, with a market capitalization of just under $7 billion.
With a staggering 140% rally over the past month, Pepe coin is now the 19th largest cryptocurrency by market capitalization, data from CoinMarketCap reveals. Additionally, its $2.7 billion daily trading volume tops that of large-cap altcoins such as Solana and XRP.
However, investors are now facing the all-important question - will PEPE continue to rally and how high can it go?
A few smart-money investors are already divesting into other new meme coins, with AI-powered meme token WienerAI emerging as one of the better alternatives.
Why Is Pepe Coin Rallying In May?
Pepe coin has been one of the top-performing cryptocurrencies in May.
According to CoinMarketCap, the frog-themed meme coin rallied by 140% over the past month, posting the highest gains of any top 100 cryptocurrency. Crypto Daily reported that PEPE flipped Uniswap and Polygon today, and now has its sights set on NEAR Protocol.
However, whether or not the meme coin could continue its uptrend in June is the biggest question.
PEPE’s bullish strength is largely due to its strong correlation with Ethereum. The surprising approval of spot Ethereum ETFs and ETH’s subsequent rally has provided a massive boost to the meme coin, resulting in multiple new all-time highs.
The correlation between the two assets isn’t a new phenomenon. Meme coins have been acting as leveraged bets on their respective native tokens, with Dogwifhat and Solana perhaps the biggest examples of this trend.
Pepe Coin Price Prediction - How High Can It Go In June?
Considering the meme coin’s correlation with Ethereum, making a PEPE price prediction largely depends on ETH’s trajectory in June.
Notably, while the SEC has approved the 19b-4 filings of spot Ethereum ETFs, its Division of Corporate Finance still needs to approve the S-1 forms. While it may be a mere formality, the S-1 approval could take anywhere from weeks to months.
Therefore unlike the spot Bitcoin ETFs, spot ETH ETFs could take a while to start trading, potentially after June. This temporary lack of institutional inflow could take a toll on ETH’s price trajectory, thus adversely affecting Pepe in the process.
There is also a bearish possibility that the market may be overestimating the spot Ethereum ETF inflow.
Bloomberg Intelligence ETF analyst Eric Balchunas expects Ethereum ETFs to have a cumulative asset under management of only 10-15% the size of Bitcoin ETFs. The weak inflows could result in an impulsive selling spree for ETH, resulting in even more selling pressure for Pepe coin.
Bloomberg Intelligence ETF analyst Eric Balchunas expects Ethereum ETFs to be 10-15% of the assets of the BTC ETFs. Several indicators suggest institutional interest in Ethereum is much lower than it was for Bitcoin, according to researcher Noelle Acheson. The leading ETH futures…
— Wu Blockchain (@WuBlockchain) May 24, 2024
In the long term, experts remain extremely bullish on PEPE, expecting it to replicate Dogecoin and Shiba Inu’s performance in 2021. However, the meme coin could witness a cooling-off phase in June.
According to our Pepe coin price prediction, the token could trade as low as $0.000012 in June.
Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
