Meme coins FLOKI and PEPE see a strong rally, what drives them?

While the broader cryptocurrency market takes a breather ahead of the Ethereum spot ETF decision, the meme coin sector continues to move forward with a strong rally. Among the top five meme coins, PEPE Coin (PEPE) and Floki Inu (FLOKI) posted double-digit gains of 28% and 12%, respectively.

What’s behind the PEPE Coin Rally?

The world’s third largest meme coin, PEPE, has seen an unstoppable rally in recent weeks. Over the past 24 hours, the PEPE coin price increased by a further 28%, reaching a new all-time high at $0.0000138, and its market capitalization rose to $6 billion.

Additionally, daily trading volumes for PEPE Coin increased by 90% to over $4.4 billion.

Technical analysis of The daily chart of PEPE 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) signal bullish sentiment.

Over the past 48 hours, there has been a brief attempt by 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 bounce above the signal line. Since then, the MACD line has diverged 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 close monitoring of this technical indicator.

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

The FLOKI Inu price rally

In the last 24 hours, the FLOKI price rallied more than 11%, trading at $0.0002332 with a market capitalization of $2.2 billion. FLOKI price is on track to challenge it historic high levels after it last failed to surpass it in March. Furthermore, the daily trading volume for FLOKI also increased by 110% to $825.94 million.

FLOKI is currently trading above the 50-day and 200-day simple moving averages (SMA), asserting an uptrend.

Furthermore, the 50-day SMA broke above the 200-day SMA to form a golden cross around $0.0001744, further strengthening the bullish sentiment.

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

Fuente