3 reasons why Pepe expects another 70% rise by July
Pepe (PEPE) has rebounded 17.85% two days after hitting a local low of $0.00001300, as Cointelegraph previously predicted, and is currently trading as high as $0.00001340 on June 12.
This rebound was accompanied by an increase in trading volume, which indicated stronger confidence among traders, which could further fuel upward momentum.
At least three indicators indicate a strong bullish outlook for the PEPE market, suggesting that the price of Memcoin could rise as much as 50% by the end of June. Let’s take a closer look at these potential catalysts.
PEPE’s ascending wedge pattern suggests a 70% upside ahead.
As of June 11, the price of PEPE is currently hovering around the lower trendline of a rising wedge pattern, indicating potential support and a possible bounce towards the upper trendline at around $0.00002661. About 70% of the current price.
A rising wedge usually resolves when the price falls below the lower trend line, leading to increased volume and a significant downside. However, PEPE’s continued rebound from its trend line indicates that such a collapse is not imminent.
Two important support levels near the lower trendline of the wedge support this potential bounce. The 50-day exponential moving average (50-day EMA, red wave) and the 1.0 Fibonacci retracement line.
Related: Just a few days after ATH, PEPE trading volume has surged 3x since early May.
Nonetheless, a breakdown of this support confluence could trigger a bearish scenario, with a downside target range between $0.00000283 and $0.00000642 by the end of June or July, depending on where the breakdown occurs.
Whale Accumulation Indicates Market Confidence
The PEPE market is showing bullish signals due to continued accumulation and holding behavior by the largest investors.
The percentage of PEPE supply held by the largest holders (over 1 billion) remains relatively stable, fluctuating slightly at around 96.02%. This indicates that the largest investors did not change their positions significantly during the June price correction.
Smaller holders, including PEPE 10-100 million and PEPE 1-10 million, have been actively accumulating during the price decline, suggesting increased participation and confidence among individual investors.
Overall, the increasing proportion of small and mid-cap Pepe holders signals growing interest and strategic accumulation in the market, boosting June’s upside prospects.
Fed’s upcoming decisions and market reaction
The possibility of a 50% rise in PEPE by the end of June is strengthened by expectations that the Federal Reserve will cut interest rates in September.
Federal Reserve Chairman Jerome Powell will maintain the option of cutting interest rates earlier than expected as the U.S. unemployment rate rose to 4% in May from 3.9% the previous month, according to Bhanu Baweja, chief strategist at UBS.
Bond traders said the likelihood of a 250bps interest rate cut in September increased from 48.6% the previous month to 50% ahead of the Federal Open Market Committee (FOMC) meeting on June 12.
These bets led to a sharp decline in Treasury yields ahead of the FOMC meeting, with the benchmark 10-year yield falling 180 basis points per day.
Lower bond yields increase the opportunity cost of holding risky, non-yielding assets such as cryptocurrencies. This may increase traders’ preference for the riskiest memecoins such as Pepe, Dogecoin (DOGE), Bonk (BONK), etc. in June.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
