Pepe price has rallied this month as investors bought dips and futures open interest surged.
Pepe, a viral meme coin, rose to a high of $0.000008960, its highest since February 24 and up 73% from its yearly low.
The rally is underway as futures open interest surged to its highest level since February 2. The metric surged to over $324 million, up from this month’s low of $166 million.
A surge in open interest is a key indicator in the cryptocurrency market, measuring all outstanding futures contracts. A rise in open interest is often seen as a bullish signal.
Pepe has also recovered amid signs of investor accumulation. According to Nansen, exchange reserves have fallen 0.73% over the past seven days to 240.7 trillion tokens. Falling exchange reserves typically indicate that holders are moving their tokens off exchanges, which is often a sign that they intend to hold on rather than sell.
Additional data shows that the most profitable Pepe holders over the past week are still holding most of their positions. The most profitable trader made $607,000 in profits and still holds 91% of his tokens. The next three top traders all hold close to 100% of their tokens.
Pepe’s recovery coincides with a general uptick in sentiment around the cryptocurrency. The Crypto Fear & Greed Index has moved out of the “extreme fear” zone, rising from a low of 18 earlier this month to 34. The improvement comes alongside a broader market rally that has pushed the total crypto market capitalization to nearly $3 trillion.
Pepe Price Analysis
The daily chart shows the coin has recovered after bottoming out at $0.000005895 on March 10. That level is significant because it matches the low reached in August 2023. Since then, the coin has tested but failed to break below that range several times.
The latest recovery follows the formation of a falling wedge pattern, a popular bullish reversal setup. This pattern forms when an asset trades between two converging descending trendlines approaching a breakout point.
The relative strength index and the MACD indicators have turned upward. The RSI has moved to 60, while the two MACD lines are approaching the zero line.
Pepe price has slightly risen above the 50-day Exponential Moving Average, a bullish sign. The next key resistance to watch would be $0.00001717, the 50% Fibonacci retracement level, which is about 95% above current levels. A move above that level would indicate a higher price, potentially reaching all-time highs.
