This month, the price of Pepe coin has experienced a recovery as investors took advantage of the dip and futures open interest increased significantly.
Pepe (PEPE), a popular meme coin, soared to a peak of $0.000008960, marking its highest value since February 24 and a 73% rise from its lowest price this year.
The ongoing recovery is accompanied by a rise in futures open interest, which has reached its highest level since February 2. This metric surged beyond $324 million, climbing from a low of $166 million earlier this month.
High open interest serves as an important indicator in cryptocurrency markets, reflecting all open futures contracts that remain unsettled. An increase in open interest is frequently interpreted as a bullish signal.
Pepe has also surged amid indications of growing investor accumulation. Data shows that exchange reserves have decreased by 0.73% over the past week, bringing the total to 240.7 trillion tokens. A decline in exchange reserves often suggests that holders are transferring their tokens off exchanges, which typically indicates an intention to hold rather than sell.
Additional analysis indicates that the most successful Pepe investors over the last week are largely maintaining their positions. The most profitable trader has realized $607,000 in gains while retaining 91% of their tokens, and the next three top traders nearly hold all of their positions as well.
Pepe’s price recovery aligns with a general improvement in cryptocurrency sentiment. The Crypto Fear & Greed Index has moved out of the “extreme fear” territory, rising from a low of 18 earlier this month to 34. This change has coincided with a wider market rally, pushing the total cryptocurrency market capitalization close to $3 trillion.
Pepe Price Analysis
The current surge in Pepe coin prices conforms to recent market predictions.
The daily chart illustrates that the token rebounded after hitting a low of $0.000005895 on March 10, a significant level as it aligns with the lowest point seen in August 2023. Since then, the coin has attempted but failed to drop below this range several times.
The latest surge occurred following the formation of a falling wedge pattern, a typical bullish reversal formation. This setup emerges when an asset trades between two descending, converging trendlines that approach a breakout.
The Relative Strength Index (RSI) and the MACD indicators are both trending upward. The RSI has reached 60, while the MACD lines are moving toward the zero line.
Pepe’s price has also slightly surpassed the 50-day Exponential Moving Average, which is a positive sign. The next significant resistance level to monitor will be $0.00001717, the 50% Fibonacci Retracement level, approximately 95% above the current price. Surpassing this level could signal further upward movement, possibly reaching new all-time highs.