Pepes Price Recovers as Traders Spot Bullish Trends
Pepe experienced a surge in price for the second consecutive day, as the crypto market stabilized and traders identified positive trends. The token’s value reached $0.000012, marking a significant 25% increase from its recent low this month. This price recovery has propelled its market cap to nearly $5 billion.
The rise in Pepe’s price was in line with the resurgence of other meme coins. For instance, Popcat, a Solana-based meme coin, saw a remarkable increase of over 65%, while Tooker Kurlson, Jeo Boden, and Mog Coin also witnessed gains of more than 30%.
One possible explanation for this upward trend is the struggle of Bitcoin to drop below the critical support level at $60,000. On Tuesday, Bitcoin was trading at $61,125, with investors taking advantage of the dip in its price.
Furthermore, the stability of Pepe can be attributed to the consistent percentage of whale holdings throughout the month. According to data from CoinMarketCap, whales held more than 203 trillion PEPE tokens on Tuesday, the highest amount since May 31st. An increase in whale holdings is generally seen as a positive indicator for a cryptocurrency. The number of Pepe holders has also surged to over 247k, as reported by Etherscan.
Traders have pointed out several bullish patterns that Pepe has recently formed. Notably, the token has consistently remained above the 100-day Exponential Moving Average (EMA), indicating a bullish trend. Additionally, Pepe has formed a falling wedge chart pattern, which is typically seen as a bullish signal. On Tuesday, the token broke above the upper boundary of this pattern.
Moreover, Pepe has displayed a hammer candlestick pattern, signaling a potential rebound, especially with rising trading volume. Data from CoinGecko shows that the daily trading volume of Pepe across all exchanges has surged to over $865 million, surpassing Monday’s $454 million.
In the futures market, open interest in Pepe has climbed to over $134 million, the highest level since June 17th. Open interest is a crucial metric that measures the number of contracts held by traders in active positions.
Furthermore, Pepe has managed to surpass the 38.2% Fibonacci Retracement level, suggesting further upward potential. However, there remains a risk that this price rebound could be a temporary phenomenon known as a dead cat bounce, where an asset briefly recovers before resuming its downward trajectory.
