The popular memecoin, Pepe (PEPE), has recently captured significant attention within the cryptocurrency market. Following a challenging period that saw its market capitalization dip to a low of $2,65 billion in March 2025, PEPE has staged a notable recovery, pushing its market cap back above the $5 billion mark. This resurgence is underscored by a remarkable surge in investor interest, raising questions about the sustainability of its current upward trajectory.
A Groundswell of Interest Signals Bullish Momentum
A key indicator of PEPE’s renewed vitality is the drastic increase in public interest, as evidenced by Google Search trends. The “interest over time” metric for PEPE has skyrocketed to 92%, a sharp rise from a mere 42%. This metric is particularly crucial for memecoins, as their valuation and movement are heavily influenced by community sentiment and broader public engagement. For context, even established memecoins like Dogecoin (DOGE) are currently seeing an interest level of 65% and climbing. While high interest often accompanies market peaks, this latest surge arrives as PEPE registers a significant technical breakout.
Breaking the Bearish Grip: A Technical Crossroads
From a technical analysis perspective, PEPE has successfully shattered a long-standing bear market trendline that had suppressed its price since the highs of December 9, 2024. The memecoin experienced a considerable decline, bottoming out at $0,00000568 in March through a distinct double bottom formation. The decisive breakout from this bearish pattern occurred on July 10, with a retest confirming the move five days later. Analysts are now eyeing $0,000016 as the next significant resistance level. A successful breach of this point could potentially propel PEPE back towards the highs observed in the last quarter of 2024, signaling a potential flip from a prolonged bear market to a new bullish phase. Furthermore, after a brief period of seller dominance, the trading volume for PEPE has decisively shifted back into the control of buyers.
Source: TradingView
Navigating the Dilemma: Whale Activity and Valuation Concerns
Despite the strong technical signals and surging interest, a degree of caution persists, as highlighted by certain on-chain activities and valuation metrics. Notably, some large holders, often referred to as “whales,” have begun closing their long positions. For instance, reports indicate that a prominent whale, James Wynn, recently closed profitable long positions in both PEPE and Ethereum (ETH), securing profits of $538,500. Interestingly, Wynn subsequently opened a 10x long position on Dogecoin (DOGE), suggesting a possible expectation of a short-term correction for PEPE following its recent breakout.
Further analysis by IntoTheBlock reveals that PEPE’s NVT (Network Value to Transaction) ratio stands at 43,21, indicating that the token’s value may be low relative to its transactional volume. The NVT ratio also saw a 24-hour decline of 30,92%, with its historical range fluctuating between 26 and 120. This metric can sometimes suggest that an asset’s price is outpacing the underlying utility or transaction volume, potentially signaling an overbought condition.
In terms of market correlation, PEPE has shown a strong alignment with major cryptocurrencies over the last 30 days, with a correlation of 0,92 to Bitcoin (BTC) and 0,95 to Ethereum (ETH). The total number of addresses holding PEPE remains robust at 431,29K, indicating a wide distribution among holders.
Outlook: A Test of Sustained Momentum
PEPE’s current position is a fascinating study in market dynamics. The significant surge in interest, coupled with a confirmed technical breakout from a long-standing bear trend, paints a compelling picture of a renewed upward trajectory. However, the cautious stance of some large investors and the implications of the NVT ratio introduce an element of uncertainty. The coming weeks will be crucial in determining whether PEPE can consolidate its gains and push towards new highs, or if the recent rally is merely a temporary surge subject to a market correction.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Always conduct thorough research before making investment decisions.
