The meme coin sector has indeed been heating up recently. PEPE gained 62% in a week, outpacing DOGE's 17% and SHIB's 15% growth rates, making the gap quite significant. Retail investors' enthusiasm is also rising accordingly, with many already dreaming of a "breakthrough above previous highs."

However, from my perspective of eight years in this circle, there are underlying currents behind this rally. PEPE is walking a tightrope, and FLOKI has issued a clear warning. The current boom in meme coins may be difficult to sustain for much longer.

Let's first look at the recent focus—PEPE. Entering the 2026 rebound cycle, the price surged to a high of $0.00000725 on Sunday, giving trapped investors renewed hope of a breakout. But a calm analysis of the trend suggests this rise is more like a "brief flash of light."

The key issue lies in the technical aspect, especially the neckline retest of the head and shoulders top pattern. This signal should not be ignored.

Here's a simple explanation of the head and shoulders top: it is a classic topping pattern composed of three peaks. The two side peaks (shoulders) are close in height, with the middle peak (head) being more prominent. The line connecting the lows of the shoulders is the neckline, which plays a crucial role—acting as a "lifeline" of support. Above the neckline, it provides support; once broken, it often signals a deep correction is coming.

Looking at PEPE's daily chart, the neckline was broken last year, leading directly to an accelerated downtrend. This historical experience is worth noting.