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Pepe (PEPE) token has observed an upward trend and has been rising for the second day in a row. As the overall cryptocurrency market finds stability, PEPE has risen to $0.00001326, which is an 8% recovery from the lowest value it reached this week. This has boosted the market capitalization to almost $5.36 billion.
At press time, PEPE had been trading at $0.00001279 which is a 10.22% rebound from the intraday low. In the course of the rally, the market capitalization and the 24-hour trading volume of PEPE rose by 983% and 1860% to $5,306,846,716 and $1,107,000,368, respectively
Few factors like stabilization of Bitcoin have helped in the rebound. It has been able to remain above the critical support level of $60,000 to trade at $61,125. This resiliency has led investors to purchase Bitcoin during its decline, which in turn positively impacts other cryptocurrencies such as PEPE.
According to the data from CoinMarketCap, whale holdings of PEPE tokens have been quite constant this month, standing at over 203 trillion as of Tuesday, which is the highest since May 31st. The circulation of PEPE has also risen to over 248,000 as seen on Etherscan, showing that more investors are interested and confident.
There are a number of bullish patterns visible on the price chart of PEPE traded among the users. The token has continued to trade above the 100-day Exponential Moving Average (EMA), an indication that the bulls are in charge. In addition, PEPE has recently created a falling wedge pattern, which is a strong bullish signal. On Tuesday, the token rose above the upper boundary of this pattern, which supported the bullish view.
Apart from the wedge pattern, PEPE also created a hammer candlestick pattern which has a small body and a long bottom shadow. This pattern is usually followed by a price rally, especially when there is increased trading volume.
The futures market has followed this pattern, with open interest rising to over $134 million, the highest level since June 17th, suggesting that more traders are interested in PEPE.
This has led to a change in the behavior of PEPE holders, which has helped to support the bullish sentiment for the token. The Chaikin Money Flow (CMF) value is now above the zero level suggesting that the buying pressure has picked up. This metric depicts the aggregation and distribution of the money flow over a given period and a value above zero means that the buyers are more aggressive than the sellers, which is a bullish signal
As per the analysis, if bulls manage to pull through, the token could move to the next crucial resistance level of $0.00001369. The rising buying pressure, shift from short-term to mid-term investments, and bullish chart patterns indicate that price may continue to rise. However, if PEPE does not break through this resistance level, it may range within a zone that contains the $0.00001146 support level, possibly stabilizing before attempting to rise again.
