Is PEPE the catalyst for Q4’s altcoin cycle, or is the “hype” nearing its end?
From a technical perspective, PEPE has been one of the bullish weekly performers, surging more than 10% and returning to the $0.000005 price range. But this is a critical resistance level that PEPE has struggled to overcome since the October crash, which makes it susceptible to a pullback. Notably, the on-chain data further supports this bearish scenario.
As observed in the chart below, PEPE’s exchange supply dropped by 4.77 trillion tokens on the 16th of October, which coincided with significant exchange outflows and a 13% price rally between the 17th and 22nd of October. However, BTC and ETH remained largely flat.
Notably, exchange supply has since jumped by 2.11 trillion PEPE, reversing over 40% of the earlier outflows.
In essence, PEPE’s bullish momentum appears to be losing steam.
The reasoning is simple: With the memecoin failing to clear critical resistance, investors may be taking profits, which could explain the recent 2.11 trillion PEPE inflow into exchanges. In this regard, its intraday pullback towards $0.0000043 could signal the start of a larger correction if selling pressure persists.
However, the FOMO narrative is far from dead, as Pepe [PEPE] continues to hit key milestones that could attract new speculative demand, and given the market’s division between Bitcoin and altcoins, its next move could provide a critical insight.
PEPE rally tests whether FOMO can trigger a Q4 altcoin breakout
Despite recent volatility, the past 24 hours have been strongly bullish for the memecoin
Technically, the memecoin reclaimed a $2.08 billion market cap after a 10.2% daily rally and extended its weekly gains to 20.6%. Moreover, the $483.4 million in 24-hour spot trading volume indicated growing market activity, while PEPE’s lead among the top 100 cryptocurrencies in daily gains showed that it was significantly outperforming its peers.
To put this into context, PEPE broke into the top 10 altcoins by 24-hour trading volume, recording $673 million and placing it alongside major players like Ethereum, Solana, and XRP. While Ethereum continues to dominate with $11.4 billion in volume, PEPE’s entry into the rankings highlights a sharp increase in FOMO.
The result? The PEPE/ETH ratio is up over 13% on the weekly timeframe, indicating that PEPE is outperforming against Ethereum.
According to AMBCrypto, this is where the growing “FOMO” around the memecoin begins to matter. As the memecoin reclaims $2 billion market cap, while the trading volume rises, the rally is showing signs of stronger speculative interest. Should PEPE continue to outperform ETH, the ratio could be an early signal of capital rotating toward riskier altcoins in Q4.
Final Summary
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PEPE faces resistance near $0.000005, while rising exchange inflows hint at possible selling pressure.
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The memecoin’s 20.6% weekly rally and 13% gain against ETH could signal growing altcoin FOMO in Q4.
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