Pepe (PEPE) Token Surges 17.85%: Three Indicators Suggest a Bullish Future
Summary:
Digital token Pepe (PEPE) observed a 17.85% surge, reaching up to $0.00001340 per token. This bullish performance is supported by three key indicators: an ongoing rebound in PEPE's price, stable accumulation by major investors and increased participation by smaller investors. This momentum is further propelled by the possibility of the Federal Reserve slashing the interest rates by September. However, a failure of PEPE's price to maintain its current supports could trigger a bearish scenario.
After hitting a local minimum around the $0.00001300 mark two days ago, the digital token Pepe or PEPE surged 17.85%, as per predictions from Cointelegraph. On June 12th, the price reached as much as $0.00001340. This recovery was accompanied by a spike in trade volumes, suggesting strong determination among traders that could further propel the upward momentum.
Three signals point towards a robust bullish perspective for the PEPE market, indicating a potential 50% price surge by the end of June. Below, we provide detailed insights into these potential driving forces.
As of June 11, the PEPE price was oscillating near the lower trendline of its existing rising wedge pattern. This denotes possible support and a likely rebound towards the higher trendline at approximately $0.00002661, marking an approximate 70% boost from the current pricing.
Typically, rising wedges reach resolution when the price breaks beneath the lower trendline, accompanied by a rise in trade volumes, which could result in a substantial price fall. However, PEPE's ongoing rebound suggests an impending breakdown is unlikely.
Two crucial support levels near the lower trendline of the wedge suggest potential rebound: the 50-day exponential moving average and the 1.0 Fibonacci retracement line. However, a breach below this pair of supports could prompt a bearish outcome.
The biggest holders of PEPE, investing in a billion or more, retain a stable supply, oscillating around 96.02%. This suggests that heavyweight investors do not adjust their holdings significantly despite June's price correction. Smaller investors too on the other side are accumulating consistently during the downturns, further strengthening the market's confidence.
The possibility of a 50% PEPE rally by the end of June is also reinforced by speculations that the Federal Reserve may reduce interest rates by September. It is believed that Chairman Jerome Powell may cut rates before time due to the increased unemployment rate in the US.
Bond traders too have amplified their stake for a 250 basis point rate reduction in September, leading to a significant drop in Treasury yields. This lowering of bond yields could boost the appetite for risky digital currencies like PEPE, Dogecoin (DOGE), and Bonk (BONK) in the coming weeks. However, this piece is not an investment advice or recommendation. The risks in every trading action should be thoroughly considered and researched.
Published At
6/12/2024 2:46:56 PM
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