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- PEPE jumped 26% alongside a 370% spike in trading volume
- Short liquidations amplified the rally after weeks of consolidation
- Bold forecasts place PEPE among the most watched meme coins of 2026
PEPE opened the new year with a sharp reminder that meme coins still command serious attention. On January 2, the token jumped roughly 26%, catching traders off guard after weeks of quiet price action. The rally was not just a thin bounce — trading activity exploded, pointing to renewed interest rather than temporary volatility.
With volume soaring and short sellers squeezed out, PEPE’s move has reignited debate over whether the meme coin still has room to run in 2026.
Volume Spike Signals Fresh Demand
One of the clearest signals behind PEPE’s surge was trading volume. Activity climbed more than 370% in a single day, pushing turnover above $800 million. That level of participation suggests new buyers entering the market rather than prices drifting higher due to low liquidity.
Retail demand appears to be a major driver. Data shows that users on Robinhood collectively hold over 8% of PEPE’s circulating supply, highlighting continued interest from smaller investors. Instead of selling into the rally, many holders seem content to stay put, reinforcing upward pressure.
Social media also played a role. A short message from PEPE’s official account quickly spread across crypto-focused platforms, helping revive momentum and confidence among traders who had been sitting on the sidelines.
Short Liquidations Accelerate the Move
The rally also caught bearish traders in the wrong position. After an extended period of sideways trading, short positions had built up across derivatives markets. Once PEPE broke higher, those bets were forced to unwind.
Roughly $2.65 million in short positions were liquidated within 24 hours, accounting for the majority of total liquidations. This wave of forced buying added fuel to the rally, turning what might have been a modest breakout into a sharp upward move.
Bold Market Cap Target Raises Eyebrows
Looking ahead, expectations around PEPE remain divided. Trader James Wynn recently projected that PEPE’s market capitalization could climb to $69 billion by the end of 2026 — a dramatic increase from its current valuation near $2.1 billion.
Wynn argues that PEPE’s social traction and retail engagement set it apart from other meme coins. If such a scenario were to play out, PEPE’s price could move toward the $0.00016 range. Still, projections of that scale come with clear risks, especially in a market known for sharp reversals.
PEPE’s early 2026 rally highlights how quickly sentiment can shift in the meme coin sector. Strong retail participation, a surge in volume, and aggressive short liquidations combined to drive the price higher. While long-term targets remain speculative, the latest move confirms one thing: PEPE is far from being ignored.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
