Solana-based meme token Pepe (PEPE) saw its value increase by over 35% in a week following the announcement by leading cryptocurrency exchange Coinbase that it would list the altcoin’s perpetual contracts for the first time. PEPE is currently trading at $0.000006692 according to CoinMarketCap, making it the fourth highest-gaining cryptocurrency over the past seven days.
Leveraged Trades in PEPE
An evaluation of PEPE’s daily chart performance reveals that bulls are emerging, and there is a significant drop in bearish sentiment. The MACD line for PEPE crossed above the signal line on April 22, indicating a shift from a bearish to bullish market sentiment. This transition often signals that a token’s market momentum might be gearing up for further increases.
Analysts often interpret this as a buy signal, prompting them to take long positions and exit short positions while expecting further price increases. However, while PEPE’s MACD crossover signals a shift from negative to positive market momentum, it remained below the zero line at the time of writing. This situation could indicate increased bullish pressure, though some bearish elements remain in the market.
Current Data on PEPE
Confirming the increase in bullish momentum, PEPE’s Elder-Ray index has turned to a positive value. This indicator measures the strength relationship between buyers and sellers in the market. A positive value suggests that bullish forces are dominating the market. PEPE’s mentioned index is at 0.0000014. Additionally, data from PEPE’s Directional Movement Index (DMI) shows that the positive direction index surpassed the negative index on April 22.
The upward crossing of the positive index over the negative index is also considered a bullish signal, as it indicates a stronger upward trend in the market rather than a decline. Despite the meme token’s steady value increase over the past week and a 3% price rise in the last 24 hours, PEPE’s funding rate on cryptocurrency exchanges remains negative. This situation could indicate that futures investors are increasingly opening short positions against the meme token as of April 23.
