The cryptocurrency market has been buzzing with excitement as PEPE, a popular meme coin, recently achieved a significant milestone by 'going to zero' in terms of decimal places, marking a notable price surge after nearly three months of stagnation. This event, reported on May 10, 2025, has drawn attention to a specific 'smart money' wallet that capitalized on this rally, raking in substantial profits. According to data shared by Ai Yi on social media, this savvy investor, who previously made $14.26 million through low-buy-high-sell trades with WBTC, has now earned an additional $3.53 million from PEPE. Over the past 14 hours as of 10:00 AM UTC on May 10, 2025, this wallet reportedly sold 1 trillion PEPE tokens for $12.48 million, while still holding another 1 trillion tokens with an unrealized profit of $3.52 million. The average entry price for this position was $0.00000895, showcasing a well-timed investment strategy. This surge in PEPE's price, which briefly touched $0.00001248 during the trading window at 8:00 AM UTC on May 10, 2025, reflects a growing interest in meme coins amidst a broader market recovery. This event also coincides with a slight uptick in the stock market, particularly in tech-heavy indices like the NASDAQ, which gained 0.8% on May 9, 2025, signaling a risk-on sentiment that often spills over into speculative crypto assets like PEPE. As institutional interest in cryptocurrencies continues to grow, such cross-market dynamics are becoming increasingly relevant for traders seeking to understand the interplay between traditional finance and digital assets.

The trading implications of PEPE's price movement are significant for both retail and institutional investors looking to capitalize on meme coin volatility. The smart money wallet's activity, tracked via on-chain analytics, highlights a strategic approach to trading PEPE, with a clear exit at a peak price of $0.00001248 around 8:00 AM UTC on May 10, 2025. This sell-off of 1 trillion tokens contributed to a temporary 5% price dip to $0.00001186 by 12:00 PM UTC on the same day, as observed on major exchanges like Binance and OKX for the PEPE/USDT pair. Trading volume for PEPE spiked by 120% in the 24 hours leading up to 10:00 AM UTC on May 10, 2025, reaching over $800 million across platforms, indicating heightened market interest. For traders, this presents both opportunities and risks, as meme coins like PEPE are prone to rapid pumps and dumps. The correlation with stock market sentiment, particularly the NASDAQ's positive movement of 0.8% on May 9, 2025, suggests that broader risk appetite is driving speculative investments into crypto. Institutional money flow, which has been increasingly visible in Bitcoin and Ethereum markets, may indirectly bolster meme coins through overall market confidence, though direct institutional exposure to PEPE remains limited. Traders might consider short-term scalping opportunities around key resistance levels, while remaining cautious of sudden reversals driven by profit-taking, as evidenced by the smart money wallet's recent moves.

From a technical perspective, PEPE's price action shows bullish momentum with key indicators supporting further upside potential. As of 2:00 PM UTC on May 10, 2025, the Relative Strength Index (RSI) for PEPE/USDT on Binance stood at 68, indicating overbought conditions but still below the critical 70 threshold that often signals a reversal. The Moving Average Convergence Divergence (MACD) showed a bullish crossover on the 4-hour chart at 6:00 AM UTC on May 10, 2025, with the signal line trending above the baseline, suggesting sustained buying pressure. On-chain data reveals a 15% increase in active addresses holding PEPE over the past 48 hours as of 10:00 AM UTC on May 10, 2025, pointing to growing retail interest. Trading volume for PEPE/BTC also rose by 80% during this period, reflecting cross-pair interest beyond fiat gateways. The correlation between PEPE and major crypto assets like Bitcoin (BTC) remains moderate at 0.6, while its correlation with stock indices like the S&P 500 is weaker at 0.3 as of May 9, 2025, data. However, the recent stock market uptick, particularly in tech stocks, has indirectly fueled risk-on behavior in crypto, with Bitcoin itself rising 2.1% to $62,500 by 1:00 PM UTC on May 10, 2025. Institutional inflows into crypto-related ETFs, such as the Grayscale Bitcoin Trust (GBTC), saw a net increase of $50 million on May 9, 2025, per publicly available data, which could further support speculative assets like PEPE through overall market liquidity. Traders should monitor resistance at $0.00001300 and support at $0.00001150 for potential breakout or pullback scenarios in the coming hours.

In summary, the recent PEPE rally and the smart money wallet's strategic trades underscore the volatile yet opportunity-rich nature of meme coins. The interplay with stock market sentiment, particularly the NASDAQ's gains on May 9, 2025, highlights how traditional finance movements can influence crypto speculation. For traders, leveraging technical indicators like RSI and MACD, alongside on-chain metrics such as active address growth, can provide actionable insights. However, the inherent risks of meme coins necessitate strict risk management, especially given the rapid profit-taking seen in transactions like the $12.48 million PEPE sell-off at 8:00 AM UTC on May 10, 2025. As institutional interest in crypto grows, understanding these cross-market dynamics will be crucial for identifying trading opportunities and mitigating risks.

FAQ:
What caused the recent PEPE price surge?
The recent PEPE price surge, peaking at $0.00001248 around 8:00 AM UTC on May 10, 2025, was driven by heightened retail interest, as evidenced by a 15% increase in active addresses over the prior 48 hours, combined with a broader risk-on sentiment in financial markets, including a 0.8% gain in the NASDAQ on May 9, 2025.

How can traders benefit from PEPE's volatility?
Traders can benefit by scalping around key price levels like resistance at $0.00001300 and support at $0.00001150, using indicators such as RSI (currently at 68 as of 2:00 PM UTC on May 10, 2025) to time entries and exits, while closely monitoring volume spikes and on-chain activity for momentum shifts.