Pepe hits a record high but faces a gloomy technical picture
ETH Exchange-traded fund (ETF) filings have caused traders to perceive Ethereum-based meme coins as opportunities to profit.
Pepe smashed its record high on Monday. The excitement around the SEC’s approval of an Ethereum spot Exchange Traded Fund (ETF) served as the impetus for this rash action. Pepe, an ERC-20 token, has benefited from the fervor around this ETH-based news.
ETH Exchange-traded fund (ETF) filings have caused traders to perceive Ethereum-based meme coins as opportunities to profit.
PEPE saw an 8% price increase and an all-time high of $0.00001725. Since the Ether ETF filings were accepted by the U.S. Securities and Exchange Commission (SEC) on May 20, there has been a notable 88% gain.
Following the clearance of the ETF registrations, several other Ethereum-standard meme-coins, such as Mog Coin and Dogecoin Shiba Inu, also saw notable increases.
The increasing interest of investors in Pepe is further supported by on-chain analytics. The number of wallets engaging with the Pepe blockchain is tracked by the 24-hour Active Addresses statistic, which increased from 3.5K to 12K between May 20 and 22, according to data from Santiment. This large increase indicates that, given Pepe’s present price, investors are actively interacting with the product.
Strong support is located at $0.00001387, which draws attention from investors looking for possible entry locations following a retracement. Additionally, the price trades above the 200-day and 50-day simple moving averages (SMAs), which supports the bullish outlook even more.
PEPE’s “bearish divergence” may indicate a possible price reversal because the upward momentum is weaker than the rising price action suggests. This scenario bears resemblance to the 40% meltdown of meme coins in January, which transpired after a discernible discrepancy between their rising values and descending RSI patterns.
PEPE’s price might correct by 40% from the current levels and reach its 50-day exponential moving average (50-day EMA; the red wave) at roughly $0.00000965 by June. That is similar to the price correction in January before its bearish divergence warning.
On the other hand, if the current trend continues, PEPE might reach its 2.618 Fibonacci retracement level near $0.00002203 in the upcoming weeks, up almost 32% from where it is now.
Pepe’s wealthiest investors take profits off the table, which supports the tokens’ gloomy technical picture. BlockBeats data recently reported a trader made a tidy profit of about $2.17 million after selling all their PEPE coins, the trader paid $250,000 for 160.62 billion PEPE coins in December 2023 the coins were sold for 644 ETH yesterday, which is roughly $2.42 million.
During the recent market upswing, there has been a notable decline in the amount of PEPE held by entities whose balances surpass one billion tokens. This suggests that the prices for these “whales” have been peaking locally. As a result, there is now more PEPE available that smaller investors own.
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