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Pepe (PEPE) has been on a bullish rally in the last 24 hours after establishing support at $0.000008865. The meme coin experienced a notable surge of nearly 16%, following the bullish sentiment across the cryptocurrency market. This surge has sparked discussions among investors and analysts regarding the potential for a bullish reversal or a breakout scenario for PEPE.
As bearish sentiment in the cryptocurrency market wanes, PEPE has managed to stand out by appreciating nearly 17% over 24 hours. This surge positioned PEPE as one of the highest gainers in the market, showcasing its resilience amidst broader market trends. As a result, PEPE reached a critical price level, raising speculation about the possibility of further price appreciation and a potential breakout.
PEPE/USD 24-hour price chart (source: CoinMarketCap)
CoinMarketCap data indicates that PEPE's price surge propelled it to a trading value of $0.000008865, accompanied by a market capitalization surge of 16%, hence exceeding $3.73 billion. Such robust performance positioned PEPE as the 28th largest cryptocurrency by market capitalization. Moreover, this uptick in price led to over 75% of PEPE investors being in profit, according to insights from IntoTheBlock.
As PEPE's price approached critical levels, analysts began scrutinizing technical indicators and market dynamics to assess the potential for further price movement. World of Charts, a prominent crypto analyst, highlighted a bullish flag pattern forming on PEPE's chart, suggesting a potential 80% price increase in the coming weeks if the pattern breaks out successfully.
PEPE/USD 12-hour price chart (source: TradingView)
A closer examination of market metrics revealed a surge in buying pressure for PEPE, as evidenced by a spike in exchange outflow on May 3rd. Moreover, PEPE's supply on exchanges experienced a significant decline, while supply outside of exchanges rose, indicating heightened investor interest and accumulation. Despite these bullish signals, PEPE's weighted sentiment dropped, suggesting lingering bearish sentiment in the market.
The surge in PEPE's price was further fueled by its performance in the derivatives market. Coinbase's listing of PEPE on its futures platform, after several delays, bolstered investor confidence and contributed to increased trading activity. PEPE's futures volume surpassed that of Dogecoin (DOGE), the largest memecoin by global market capitalization, highlighting its growing prominence in derivatives trading.
Derivatives data from CoinGlass revealed $2.48 billion in PEPE futures volume, making it a dominant player in the derivatives market. The rising open interest (OI) further indicated renewed interest from derivatives traders in the meme coin. Notably, Binance emerged as a key platform for PEPE futures trading, with a bullish sentiment reflected in its long versus short ratio.
PEPE/USD 4-hour price chart (source: TradingView)
As PEPE continues its bullish momentum, analysts are closely monitoring key price levels and technical indicators to gauge its future trajectory. Technical analysis suggests a bullish bias for PEPE, with indicators such as the Relative Strength Index (RSI) and Awesome Oscillators (AO) signaling growing buyer momentum and bullish sentiment.
In the event of enhanced buying pressure, PEPE could potentially flip resistance levels into support floors, paving the way for further price appreciation. However, a scenario where holders begin to cash in on gains could lead to a retracement in PEPE's price, potentially invalidating the bullish thesis. Enhanced seller momentum could further exacerbate price declines, jeopardizing key support levels and signaling a bearish reversal.
