The popular altcoin Pepe (PEPE) reached its all-time high (ATH) on May 27, 2024, and has been declining since then. Despite this decline, the price chart indicates a bullish outlook, keeping investors optimistic about a recovery. PEPE is currently trading at approximately $0.0001264, having risen 2.9% in the last 24 hours despite a 13.5% drop over the past 7 days.
Bulls May Reenter the Market
Currently, PEPE’s price is above the 50-day and 200-day simple moving averages (SMA) but is dangerously close to the 50-day SMA. Altcoin previously broke out from an ascending triangle formation, reaching an all-time high of around $0.00001725. After this breakout, the bullish momentum waned, allowing bears to pull the price to the 0.5% Fibonacci retracement level.
The price briefly touched this retracement level before rebounding, showing strong bullish market action. On a broader scale, this retracement offers a textbook breakout and retest pattern for the ascending triangle formation. The 0.5% Fibonacci retracement level perfectly coincides with the top of the ascending triangle formation, indicating that bulls are ready to buy again at this level.
A recovery from this level could push PEPE’s price to around $0.00001981, but resistance may be encountered at $0.000014 and $0.000017 levels along the way. Conversely, if bears gain the upper hand, there is strong support around $0.00001 that could hold the price.
Pepe’s previous price surge followed increased interest in the Ethereum ecosystem after the SEC approved 19-4b ETF application forms for spot Ethereum ETFs. Since then, excitement around this event has waned, and ETH has entered a consolidation phase.
Increase in Supply Raises Questions
Despite this, on-chain analysis company Santiment reported that the total number of PEPE investors is at an all-time high of 218,000, suggesting that PEPE investors might be preparing for a significant move. Santiment also reported that the total PEPE supply increased from 420.78 trillion on March 13 to 422.55 trillion on June 9, adding approximately 1.77 trillion coins worth about $22.3 million at the current price.
CoinGecko data shows that the maximum PEPE supply is 420.69 trillion, raising questions about this increase in supply. This discrepancy indicates a need for further investigation into how new coins are minted.
As the cryptocurrency market continues to evolve, memecoins like PEPE are expected to lead the next bull run. While investors prepare to surpass the previous ATH level, the future remains uncertain. Only time will tell if PEPE can reach new heights in the dynamic cryptocurrency market.
