3 reasons why Pepe is ready to jump another 70% in July
Pepe (PEPE) has rallied 17.85% two days after hitting a Cointelegraph low of around $0.00001300 as previously expected and is currently trading at $0.00001340 on June 12th.
This rebound indicates strong confidence among traders along with increased trading volume, which could further fuel the upward momentum.
At least three indicators point to a strong outlook for the PEPE market, suggesting that memecoin could experience a 50% price increase by the end of June. Let's examine these potential triggers in detail.
PEPE's growing wedge pattern suggests a 70% gain in the future
In the year Since June 11, PEPE price has been hovering in the current rising wedge pattern downtrend, indicating support and possible retracement to the uptrend at around $0.00002661, approx. 70% of current price levels.
Rising wedges usually occur when the price breaks below the lower trend line, resulting in a steep decline with increased trading volume. However, PEPE's ongoing correction from the trend line indicates that such a breakout is not in the near future.
Two critical support levels near the wedge's lower trendline support this potential rebound: the 50-day exponential moving average (50-day EMA; red wave) and the 1.0 Fibonacci retracement line.
RELATED: PEPE Trading Volumes Raised 3X After ATH in Early May
However, a break below this support rally could trigger a bearish scenario, with possible lower targets between $0.00000283 and $0.00000642 in late June or July, depending on the breakout point.
Whale stocks show market confidence
The PEPE market is showing bright signs due to the continued accumulation and holding behavior of its large investors.
The percentage of PEPE supply held by the largest holders -1 billion or more – is relatively stable, fluctuating slightly around the 96.02% mark. This suggests that large investors are not changing their positions significantly during the June price correction.
Smallholders, including those with 10 million to 100 million PEPE and 1 million to 10 million PEPA, are actively accumulating during bullish periods, increasing participation and confidence among retail investors.
Overall, the growing percentage of small and medium-sized PEPE holders indicates an increase in demand and strategic stocks in the market, adding to the bullish outlook for June.
Fed's upcoming decisions and market reactions
PEPE strengthened on expectations of a 50% rally by the end of June, with the Federal Reserve likely to cut interest rates in September.
UBS chief strategist Bahanu Baweja said Fed Chairman Jerome Powell is keeping the options open for more cuts than expected as the US unemployment rate rises, rising to 4% in May from 3.9% a month ago.
Bond traders bid for a 250 basis point (bps) rate cut in September, rising to 50% before the Federal Open Market Committee (FOMC) meeting on June 12 from 48.6% a month ago.
These bets lead to sharp declines in all Treasury yields ahead of the FOMC meeting, with the benchmark 10-year note falling 180 bps in one day.
Low bond yields increase the risk of holding non-yielding risk assets such as cryptocurrencies. This may increase traders' appetite in June.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
