Pepe Meme Coin Stabilizes Amid Improved Crypto Sentiment

Despite the current market volatility, Pepe, the second-largest Ethereum meme coin, has shown signs of stabilization this week. This trend is mirrored by other popular meme coins, such as Fartcoin, Shiba Inu, and Dogecoin, which have experienced a rebound in recent days.

Altcoin Resilience Amid Geopolitical Risks

Notably, these altcoins have managed to bounce back despite rising geopolitical risks, including the recent announcement of new tariffs targeting steel and aluminum imports. This move is expected to lead to higher inflation in the country, which could prompt the Federal Reserve to maintain high interest rates for longer.

Upcoming Catalysts for Altcoin Price Movement

Two key events are expected to significantly impact the price movement of Pepe and other altcoins. Firstly, the upcoming congressional testimony by Jerome Powell, the Fed Chair, has historically shown to influence cryptocurrency prices and other assets. Secondly, the release of the January Consumer Price Index (CPI) data on Wednesday is highly anticipated, with economists predicting a rise in headline inflation to 2.9% and core CPI to 3.3%.

These inflation figures will play a crucial role in determining the Federal Reserve’s next actions, which in turn will impact altcoins like Pepe. A positive core inflation report released on January 15 led to a 12% price jump for Pepe.

Pepe’s Potential Catalysts for Growth

Several factors suggest that Pepe may experience further growth in the near future. With a daily volume of almost $1 billion, Pepe remains a highly popular meme coin, outperforming other notable meme coins like Shiba Inu. Additionally, Pepe’s futures open interest has risen over the last four consecutive days, reaching a high of $278 million, indicating increased demand among investors.

Furthermore, data from Nansen shows that the total Pepe coins in exchanges have decreased by 1.43% over the last 7 days to 237 trillion.

Pepe Coin Price Analysis

According to the daily chart, the Pepe price remains in a bear market after experiencing a 65% drop from its highest level in 2024. However, the coin has historically shown a tendency to rebound by double-digits whenever it retests the ascending trendline that connects the lowest swings since May last year.

This trend suggests that there is a likelihood that Pepe will rebound and possibly retest the 200-day moving average at $0.00001390, representing a 40% increase from the current level. While a move to $1 would be unlikely, given the significant surge required, the coin’s potential for growth remains an interesting development to watch.

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