The Pepe price continued its recovery this week, jumping for four consecutive days amid whale accumulation and an Ethereum rebound.
Summary
- Pepe Coin price has bounced back in the past four consecutive days.
- Data shows that whale and smart money investors are accumulating.
- Technicals suggest that it has more upside in the near term.
Whales are buying Pepe tokens
Pepe (PEPE) token rose to $0.000012 on Saturday, Aug. 9, its highest level since July 28 and 135% above the lowest point this year.
Nansen data shows that whales have continued to buy the recent dip, with their holdings jumping to the highest point in over a year.
Whales hold over 8.95 trillion tokens, a 12% monthly jump. Their holdings have soared by 30% in the last 12 months, a sign that they expect it to keep surging.
Smart money investors have also boosted their Pepe holdings. They now hold 643 billion tokens, a big increase from 258 billion in May this year. Smart money investors have a reputation of executing profitable trades.
More data shows that Pepe’s demand has been soaring in the futures market. Its futures open interest has jumped in the last seven consecutive days, reaching a high of $720 million, the highest level this month.
The soaring open interest has coincided with a prolonged period of positive funding rate. A positive funding rate is a sign that market participants are hopeful that the future price will be higher than the spot one.
A potential catalyst for Pepe is that Ethereum (ETH) price has gone vertical and is approaching its all-time high. ETH jumped to $4,100 as demand from American investors soared.
It is common for meme coins in a chain to rally when the main token is experiencing a surge. For example, tokens like Dogwifhat (WIF) and Bonk (BONK) often jump when Solana price is rising.
Pepe price technical analysis
The daily timeframe chart shows that the Pepe Coin price has been in a strong uptrend in the past few months. It jumped from a low of $0.000005078 to $0.00001200.
Pepe remains above the ascending trendline that connects the lowest swings since March this year. It has also formed an ascending triangle pattern, which often leads to a strong breakout.
Pepe has jumped above the 23.6% Fibonacci Retracement level and the 50-day moving average. Therefore, it will likely keep rising as bulls target the 38.2% retracement level at $0.000014, followed by the year-to-date high of $0.00001625.
