Pepe’s price surged for the second consecutive day amidst a stabilizing crypto market and bullish technical formations. The token reached $0.000012, marking a roughly 25% increase from its recent monthly low, propelling its market capitalization close to $5 billion.
The uptick in Pepe’s price coincided with a resurgence among other meme coins. Popcat, a Solana-based meme coin, surged by over 65%, while Tooker Kurlson, Jeo Boden, and Mog Coin saw gains exceeding 30%.
One likely catalyst for this recovery is Bitcoin’s struggle to sustain losses below the critical support level of $60,000. As of Tuesday, Bitcoin was trading at $61,125, with investors seizing opportunities to buy the dip in Pepe.
Moreover, Pepe has found stability as data indicates that whale holdings have remained consistent throughout the month. According to CoinMarketCap, whales held over 203 trillion PEPE tokens on Tuesday, marking the highest since May 31st. Increased whale holdings generally bode well for a coin’s outlook. Concurrently, the number of Pepe holders has risen to over 247,000, as reported by Etherscan.
Traders have identified several bullish patterns in Pepe’s recent performance. Notably, the token has consistently maintained levels above the 100-day Exponential Moving Average (EMA), indicating bullish control. Additionally, Pepe has formed a bullish falling wedge chart pattern, breaching its upper boundary on Tuesday.
Further bolstering its bullish case, Pepe exhibited a hammer candlestick pattern, characterized by a small body and an extended lower shadow, often signaling a potential rebound, particularly when accompanied by rising volume. According to CoinGecko, daily trading volume for Pepe surged to over $865 million, surpassing Monday’s $454 million. Simultaneously, open interest in Pepe futures climbed to more than $134 million, its highest since June 17th, underscoring heightened trader activity.
Technical analysis reveals Pepe’s bounce above the 38.2% Fibonacci Retracement level, suggesting further upside potential. However, there remains a risk that this rebound might be a temporary phenomenon known as a “dead cat bounce,” where an asset briefly rebounds before resuming its downtrend.