"Memecoins are the Next Big Thing After Bitcoin"...From Dogecoin to Pepe, a Surging Rally

▲ Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE)

The market capitalization of the memecoin market has risen to its highest level in three months, drawing attention to the possibility of further gains for major memecoins such as Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), and Pudgy Penguins (PENGU).

Coingape reported on May 5 (local time) that the memecoin market capitalization increased to $37.87 billion, reaching its highest level since late January. This is an increase of approximately $8 billion compared to April. As Bitcoin (BTC) touched $80,000, overall market sentiment improved, and the memecoin market sentiment index also rose to 50.

Dogecoin was cited as a leading asset driving the expansion of memecoin market capitalization. Coingape reported that Dogecoin has risen by 12% over the past seven days and could reach $0.12 if it gains another 10%. Bullish signals also appeared in the derivatives market. According to Coinglass, Dogecoin's open interest increased to $441 million. This is a significant increase compared to the $174 million level in February. The simultaneous rise in price and open interest indicates strengthening confidence among market participants.

Shiba Inu only rose 2% on a weekly basis, but it is approaching a critical breakout zone on the charts. Coingape analyzed that Shiba Inu needs to break past the $0.00000633 resistance level. This level is a key resistance in an ascending triangle pattern, and a successful breakout could see Shiba Inu's price rise by approximately 20% to $0.00000759. The current Relative Strength Index (RSI) was mentioned as an indicator showing that buying pressure is reviving.

Pepe also joined the memecoin rebound trend. Coingape reported an increase in Pepe's outflows from exchanges. Recently, $5.37 million worth of Pepe was withdrawn from exchanges, marking the largest single daily withdrawal in the past two weeks. The movement of assets off exchanges can reduce immediate selling pressure, which is interpreted as a positive short-term signal. However, Coingape pointed out that Pepe also needs new buying interest for further gains.

Pudgy Penguins showed the most prominent movement among memecoins on this day. Coingape reported that Pudgy Penguins rose by 11.66% over 24 hours, emerging as a top-gaining asset among major memecoins. In particular, Pudgy Penguins was mentioned as a memecoin that has received institutional interest, alongside Dogecoin and Pepe, following Canary Capital's ETF application. The current price is testing the 200-day exponential moving average resistance, and analysis suggests further upside potential to $0.0134 if this level is breached. However, with the Relative Strength Index (RSI) reaching 75, concerns about short-term overheating were also raised.

While the memecoin market is still outside the spotlight of mainstream assets, its market capitalization, derivatives indicators, and exchange outflow trends are rapidly changing. With Bitcoin's rise reviving risk-on sentiment, Dogecoin is using a surge in open interest, Shiba Inu is banking on a triangle breakout, Pepe on exchange outflows, and Pudgy Penguins on ETF expectations and testing the 200-day exponential moving average as catalysts for their respective gains.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*