Pepe’s price has risen for the second straight day, reflecting a stabilization in the cryptocurrency market and the identification of bullish formations by traders. The token climbed to $0.000012, marking a ~25% increase from its lowest point this month. This recovery has driven its market cap to nearly $5 billion.
Pepe’s price action aligns with the rebound of other meme coins. Popcat, a Solana-based meme coin, surged by over 65%, while Tooker Kurlson, Jeo Boden, and Mog Coin all jumped by more than 30%.
A significant factor behind this rebound is Bitcoin’s resilience, as it struggles to extend losses below the crucial support at $60,000. Bitcoin traded at $61,125 on Tuesday, with investors buying the dip. Additionally, data shows that the proportion of whale holdings in Pepe has remained steady this month. According to CoinMarketCap, whales held over 203 trillion PEPE tokens on Tuesday, the highest point since May 31st. More whale holdings are often seen as a positive indicator for a coin. The number of Pepe holders has also increased to over 247,000, according to Etherscan.
Traders have identified several bullish patterns in Pepe’s recent price movements. Firstly, the token has consistently remained above the 100-day Exponential Moving Average (EMA), signaling bullish control.
Moreover, Pepe has formed a falling wedge chart pattern, a popular bullish indicator. On Tuesday, the token broke above the upper side of this pattern. Additionally, it has formed a hammer candlestick pattern, characterized by a small head and a long lower shadow. Typically, this pattern leads to a rebound, especially when trading volume is rising. Data from CoinGecko shows that the daily trading volume of Pepe across all exchanges rose to over $865 million, up from Monday’s $454 million.
The futures market mirrors this trend, with open interest rising to over $134 million, its highest level since June 17th. Open interest is a crucial metric that measures the number of active contracts held by traders.
Furthermore, Pepe has bounced above the 38.2% Fibonacci Retracement level, indicating potential for further upside. However, there is a risk that this rebound could be part of a dead cat bounce, where an asset in a freefall briefly rebounds before resuming its downward trend.
