Pepe tokens resurgence Unveiling the reasons behind the anticipated price upswing
Pepe (PEPE) experienced a rebound in its price on Wednesday following the release of optimistic US Consumer Price Index (CPI) data. Pepe saw a surge, reaching a high of $0.00014 in a high-volume environment. This marks a significant increase of more than 23% from its lowest point earlier in the week.
Investors seized the opportunity to buy the dip after the release of the CPI data by the Bureau of Labor Statistics (BLS), which revealed encouraging inflation figures. The headline CPI showed a drop from 0.3% to 0.0%, falling short of the expected 0.1%. On an annualized basis, the CPI declined for the second consecutive month, reaching 3.3% from the previous 3.4%. Excluding the volatile food and energy prices, inflation dropped to 0.2% month-on-month and 3.4% year-on-year.
These numbers arrived just before the Federal Reserve’s interest rate decision. Analysts anticipate that the Fed officials will view the current inflation figures favorably and consider cutting rates in the coming months. Rate cuts generally have a positive impact as they make speculative investments, particularly meme coins, more appealing by reducing borrowing costs.
Pepe’s price rebound was further supported by an overall uptrend in the cryptocurrency market, prompting patient investors on the sidelines to begin buying. Bitcoin surged to $69,600, while Ethereum reached $3,645. Other meme coins like Bonk, Dogwifhat, and Book of Meme also experienced a bounce back. However, these tokens may face a sharp reversal if the Fed makes a hawkish decision.
Additionally, Pepe’s momentum can be attributed to a classic case of buying the dip. Notably, the coin had experienced a decline of approximately 35% from its peak earlier in the week. This rebound occurred in a high-volume environment, with Pepe’s daily volume surging to over $1.28 billion, up from Tuesday’s $714 million, according to CoinGecko.
Analyzing the daily chart, it is evident that Pepe’s price rebounded after the release of weak US inflation data. It bounced back after hitting a low of $0.00001120, which was its lowest point of the week. This price was slightly above the crucial support level at $0.00001080, which was its highest swing on March 14th.
Furthermore, Pepe has surpassed the 23.6% Fibonacci Retracement level, indicating a positive trend. It has also risen above the 50-day and 25-day moving averages, as well as the first resistance level of the Andrew’s pitchfork tool.
As a result, it is highly likely that the token will continue to rise as buyers set their sights on the next psychological level at $0.00015, representing a 10% increase from the current level. If this level is broken, Pepe could soar to its year-to-date high of $0.0000172.
