Pepe price increased for the second consecutive day as the cryptocurrency market showed signs of stabilization. Traders have identified some bullish formations in the token. Pepe’s price surged to $0.000012, approximately 25% higher than its lowest point this month. This recovery has pushed its market cap close to $5 billion.

Pepe’s price action mirrored the rebound of other meme coins. Popcat, a Solana meme coin, jumped by over 65%, while Tooker Kurlson, Jeo Boden, and Mog Coin saw gains exceeding 30%.

A likely reason for this rebound is that Bitcoin has struggled to extend its losses below the crucial support level of $60,000. Bitcoin was trading at $61,125 on Tuesday as investors bought the dip.

The token has also steadied as data reveals the proportion of whale holdings has remained consistent this month. Whales held over 203 trillion PEPE tokens on Tuesday, the highest point since May 31st. More whale holdings are often viewed as a positive indicator for a coin. The number of Pepe holders has increased to over 247,000.

Pepe Price Chart

Traders have pointed to some bullish patterns Pepe has formed recently. The token has consistently remained above the 100-day Exponential Moving Average (EMA), indicating that bulls are in control.

Additionally, Pepe has formed a falling wedge chart pattern, a popular bullish signal. On Tuesday, the token moved above the upper side of this pattern.

Strap in 🚀 $PEPE

Further, Pepe has also formed a hammer candlestick pattern, characterized by a small head and a long lower shadow. This pattern often leads to a rebound, especially when trading volume is rising. The daily volume of Pepe traded across all exchanges rose to over $865 million, higher than Monday’s $454 million.

The futures market shows similar trends, with open interest rising to over $134 million, its highest level since June 17th. Open interest measures the number of contracts held by traders in active positions.

Pepe’s Open Interest and Fibonacci Retracement Level

Pepe has also bounced above the 38.2% Fibonacci Retracement level, suggesting potential for more upside. However, there is a risk that this rebound could be part of a dead cat bounce, where an asset in freefall rebounds briefly and then resumes a downward trend.

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