Pepecoin Reaches New ATH As Market Goes Crazy With ETH ETF Rumors
PATNA (CoinChapter.com)— Pepecoin price painted an impressive rally recently as the memecoin rode the coattails of wider market movement reaching a new all-time high (ATH) on May 21.
The token, which was one of traders’ favorites during March’s memecoin mania, had been crabbing for some time now.
PEPEcoin’s price started rallying on May 20 before continuing the bull run on May 21 to reach a new record high. Since May 20, the PEPE coin price has spiked more than 46% to reach $0.0000129 on May 21.
PEPE Price Finds Bears Reaching Its ATH
A crypto asset reaching its ATH usually attracts profit-booking bears, and the PEPE coin did not deviate from the script. The token failed to hold above the $0.0000129 price tag as PEPE price pared gains.
If the sell-off continues, the memecoin‘s price could drop to the 0.382 FIB support near $0.00001. Failing to hold above the $0.00001 support likely hurt investor confidence in the token, forcing PEPE price to test the 50-day EMA (purple wave) support near $0.0000082.
On the other hand, if the meme crypto token’s price continues to rise, PEPE coin price could rally to the resistance near $0.000014. Moreover, flipping the immediate resistance would help the memecoin target the resistance near $0.000018 before the token pares gains due to correction.
Furthermore, the relative strength index for Pepecoin became overbought following its recent rally, scoring 74.56 on the daily charts. The RSI is a momentum indicator that measures asset price movements to identify overbought or oversold conditions.
Overbought RSI levels and upward-moving average trendlines indicate a strong presence of bulls in the market. However, traders often consider an overbought RSI level a bearish signal since the occurrence usually precedes a bearish reversal or consolidation phase for the underlying token.
What Made PEPE Coin Price Surge
One of the most significant drivers behind PEPE coin’s recent price increase was the hype surrounding the Ethereum token. Ethereum’s price surged to $3,800 on speculation surrounding the potential approval of a Spot ETH ETF.
As a meme coin built on the Ethereum blockchain, PEPE benefited from the spillover effect of Ethereum’s bullish momentum.
The phenomenon is not isolated to PEPE; other memecoins like Shiba Inu (SHIB) and Dogecoin (DOGE) also saw price increases as traders sought to capitalize on the overall bullish sentiment in the crypto market.
Traders have been using meme coins as proxy bets on the growth of Ethereum and other major cryptocurrencies. They hope to gain from the currencies’ upward trajectories. This trend has been particularly evident since late February, with bullish demand for ETH rising steadily due to these regulatory expectations.
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Filed under: Bitcoin - @ May 22, 2024 1:59 am