Pepe (PEPE) has rallied by 3% on the daily charts after Elon Musk posted a meme of the frog smoking a cigarette on X. The memecoin is currently outperforming the top 10 crypto projects by market cap on the daily charts. Bitcoin (BTC), Ethereum (ETH), and Ripple’s XRP, on the other hand, have risen by 0.4%, 1.1%, and 0.9%, in the same time frame.
Will PEPE Breakout?
While the frog-themed memecoin is green on the daily charts, it continues to trade in the red zone in the other time frames. PEPE is down 15.6% in the weekly charts, 11% in the 14-day charts, 18.4% over the previous month, and 10.7% since June 2024.
Elon Musk’s social media posts have often led to crypto rallies. His Dogecoin (DOGE)-related posts, in particular, have caused sporadic rallies for the memecoin. Musk may have shared the PEPE meme due to a setback with his SpaceX Starship prototype. The rocket erupted in a fireball during a test.
PEPE will most likely face a correction soon. Musk’s meme on X is simply not enough to carry the memecoin through with a continued rally. This is not the first time Musk has used PEPE imagery on X. He had previously used a rendition of Pepe the Frog as a warrior as his display picture.
Cryptocurrencies Continue to Bleed
The crypto market has struggled to gain momentum over the last few weeks. Global geopolitical tensions and trade wars have caused a significant dip in investor confidence. The escalation of the Israel-Iran conflict has shaken investors worldwide. The Federal Reserve also decided to keep interest rates unchanged after its recent FOMC meeting.
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The developments have led to substantial outflows from the crypto market. Risky assets, in particular, have suffered. PEPE, being a memecoin, carries more risk than other cryptocurrencies. The coin will likely continue to glow red until there is more stability and certainty in global tensions. Investor sentiment also needs to greatly improve before the memecoin breaks out properly.