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Pepe Coin, the third-largest meme coin after Dogecoin and Shiba Inu, has seen a significant price surge, reaching its highest level since January. On Monday, the token hit $0.00001535, marking a remarkable 180% increase from its lowest price this year. This growth has been accompanied by a substantial rise in trading activity, with its 24-hour trading volume surpassing $3.2 billion—higher than the combined volumes of Shiba Inu, Official Trump, and Bonk.

Market Activity and Futures Demand

The rally in Pepe Coin was further fueled by heightened demand in the futures market. Open interest in Pepe futures hit a record high of $662 million, a significant jump from $165 million in March, when the coin was experiencing a prolonged sell-off. This spike in futures activity demonstrates increased investor confidence in the asset.

Impact of Ethereum’s Breakout

Pepe’s price movement accelerated following last week’s breakout in Ethereum, which saw ETH climb to $2,500 from its previous low of $1,387. Historically, ERC-20 tokens, such as Pepe, tend to perform well during Ethereum uptrends. This correlation is attributed to the overall positive sentiment in the crypto market when leading assets like Ethereum show strength.

Global Trade Optimism Boosts Cryptocurrencies

Renewed optimism surrounding global trade agreements has also supported the broader cryptocurrency market, including Pepe Coin. The United States and China recently agreed to lower tariffs, with the 145% tariff on Chinese imports reduced to 30% and the 125% levy on U.S. goods cut to 10%. These developments have raised hopes for improved bilateral relations, potentially easing inflation and increasing the likelihood of Federal Reserve interest rate cuts. Such macroeconomic factors often have an indirect positive impact on risk assets like cryptocurrencies.

Pepe Coin Price Patterns and Prediction

Technical analysis of Pepe Coin suggests that the ongoing rally aligns with bullish price patterns. The daily chart revealed a large falling wedge formation—characterized by two descending and converging trendlines—which typically signals a breakout to the upside. Additionally, Pepe formed a double-bottom pattern around the $0.0000057 level and has now moved above its neckline at $0.000009212, another bullish reversal indicator.

“The double-bottom pattern is widely recognized as a reliable signal for upward price momentum in technical analysis.”

Potential Risks and Key Levels to Watch

Despite its impressive growth, Pepe Coin faces potential risks due to overbought conditions. The Relative Strength Index (RSI) has risen to 84, indicating that the asset is in an overextended zone. Historically, such levels often precede short-term pullbacks as traders take profits.

If a reversal occurs, the next key support level to monitor is $0.000009212—the neckline of the double-bottom pattern. A decline to this level would still be considered bullish, fitting into a ‘break-and-retest’ setup, which is a common continuation pattern in technical analysis.

Takeaway

Pepe Coin’s recent rally highlights the dynamic nature of the cryptocurrency market, driven by both technical factors and macroeconomic trends. Whether you’re a beginner or an intermediate investor, it’s essential to monitor key price levels and market conditions closely to make informed decisions. As the crypto space continues to evolve, staying updated on developments in assets like Pepe Coin can help you navigate this exciting sector.

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