Meme Token PEPE Soars Past $2 Billion as Short Squeeze Fuels Rally

PEPE, a meme token featuring a frog theme, has seen its market capitalization soar above $2 billion following a massive short squeeze that fueled a 42% weekly rally. The surge began on September 21, when Bitcoin broke through the $85,000 mark and triggered forced liquidations across derivatives markets, with PEPE jumping nearly 25% in a single session.

The move marks a significant reversal for the meme-coin sector, which had seen trading volumes collapse by as much as 80% earlier this year due to waning speculative appetite. With Bitcoin holding above $85,000 and short interest still elevated, conditions that produced the week's rally have not fully dissipated.

PEPE's breakout above $0.00000458 marked a significant technical development in the rally, with the token now trading above its 20-day, 50-day, 100-day, and 200-day moving averages, typically seen as confirmation of a trend reversal. However, the overbought relative strength index reading and emergence of profit-taking near resistance suggest the immediate move may need to consolidate.