Meme Coins FLOKI and PEPE See Strong Rally, What’s Driving Them?

While the broader cryptocurrency market takes a pause ahead of the spot Ethereum ETF decision, the meme coin sector continues to push ahead with a strong upside. Among the top fives meme coins, PEPE Coin (PEPE) and Floki Inu (FLOKI) have registered double-digit gains of 28% and 12% respectively.

What’s Behind the PEPE Coin Rally?

The world’s third-largest meme coin – PEPE – has been on an unstoppable rally over the past weeks. In the last 24 hours, the PEPE Coin price has surged by an additional 28% hitting a new all-time high at $0.0000138 and its market cap soaring all the way to $6 billion.

Also, the daily trading volumes for PEPE Coin have surged by 90% all the way over $4.4 billion.

Technical analysis of PEPE’s daily chart indicates a potential continuation of its upward movement in the coming days. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are signaling bullish sentiment.

Over the past 48 hours, there was a brief attempt for the MACD line to cross below the MACD Signal line, indicating a potential bearish trend. However, buyers intervened, preventing the crossover and causing the MACD line to rebound above the Signal line. Since then, the MACD line has been diverging further from the Signal line.

Furthermore, the RSI, currently above 50, suggests that buyers are exerting more influence than sellers in the market. However, traders should be cautious as the RSI also indicates that PEPE may be overbought, warranting careful monitoring of this technical indicator.

On the other hand, the PEPE Coin whale activity remains strong. An individual with a significant holding withdrew 592 billion $PEPE ($7.95 million) from crypto exchange Binance approximately one hour ago, likely acquired during the recent price surge over the past two days, as reported by Lookonchain.

A whale withdrew 592B $PEPE ($7.95M) from #Binance 1 hour ago, most likely bought during the price increase over the past 2 days.https://t.co/zeCAtBN8fj pic.twitter.com/jxVEu4WBCq

— Lookonchain (@lookonchain) May 22, 2024

The FLOKI Inu Price Rally

In the last 24 hours, the FLOKI price has rallied by over 11% trading at $0.0002332 with a market cap of $2.2 billion. The FLOKI price is on its way to challenge its all-time high levels after it failed to cross the last time in March. Moreover, the daily trading volume for FLOKI has also surged by 110% to $825.94 million.

FLOKI is currently trading above both the 50-day and 200-day Simple Moving Averages (SMAs), affirming a bullish uptrend.

Furthermore, the 50-day SMA has crossed above the 200-day SMA, forming a golden cross around $0.0001744, which further reinforces the bullish sentiment.

The Relative Strength Index (RSI) has surged from the 50-midline level to 72, signaling significant buying pressure and indicating an advantageous position for buyers over sellers, suggesting a buying opportunity.

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