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The price of memecoin PEPE registered a boost over the weekend after the chairman of the United States Securities and Exchange Commission (SEC) hinted at a likely approval of the Ethereum ETF within a month. Despite the 1.4% increase this Monday (17), PEPE followed the downward trend seen last week.

But this short-term appreciation brought optimism to the market. With it, buyers had the strength to push the price towards the previous all-time high. And now, several data indicate that the price of memecoin could register gains of 63% in the coming months.

Possible increase of 63%

On May 21st, the PEPE price broke an ascending triangle and established a new all-time high. However, as investors began to take profits, PEPE began to pull back and fell to $0.00001057.

After almost a month of correction, PEPE reached a critical resistance level that turned into support. These types of support structures are generally strong and can support the price, preventing sellers from dominating. Furthermore, the prolonged correction has established accumulation opportunities, which is part of an uptrend.

The current PEPE price level coincides with the 0.786 Fibonacci retracement level, which generally provides support for the price recovery. This price return to the current level is part of a breakout and testing of the three-month ascending triangle that PEPE broke out of last month.

If the price reaches the top of the falling wedge, memecoin could record new highs. Considering the Fibonacci extension level of 0.27, PEPE could rise 63% in relation to its current price, which would reach US$0.00001948, breaking its maximum. On the other hand, the $0.00001057 level is expected to still act as strong resistance.

PEPE analysis. Source: TradingView.

What to expect from PEPE?

Historically, the price of PEPE has evolved in conjunction with that of Ethereum (ETH), and this time it was no different. According to journalist Eleanor Terret, Gary Gensler, chairman of the US SEC, said that Ethereum spot ETFs will likely be approved over the next few months.

As Ethereum investors grew optimistic about this news, so did PEPE. According to Santiment, the number of small PEPE investors broke a record, with a reduction in the number of whale investors holding between US$100,000 and US$1 million.

This is an important metric as it shows redistributions of supply among small investors. Whale-only projects may not last long, as existing whales typically eliminate liquidity from pools.

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