Pepe (PEPE) price experienced a significant rebound on Wednesday following the release of favorable US Consumer Price Index (CPI) data. The price surged to $0.00014 in a high-volume trading environment, marking a rise of over 23% from its lowest point earlier in the week.

Impact of CPI Data on Cryptocurrency

The Bureau of Labor Statistics (BLS) released positive inflation data, showing the headline CPI dropped from 0.3% to 0.0%, missing the expected 0.1%. This marks the second consecutive month of decline on an annualized basis, with CPI falling to 3.3% from the previous 3.4%. Excluding volatile food and energy prices, inflation dropped to 0.2% MoM and 3.4% YoY.

These figures come ahead of the Federal Reserve’s interest rate decision, with analysts predicting that the Fed may consider cutting rates in the coming months. Lower borrowing costs generally boost the attractiveness of speculative investments, including meme coins.

The US May Core CPI (YoY) is 3.4%, lower than the forecast of 3.5% and the previous 3.6%.

Following the CPI data release, Bitcoin surged by 2.4%. Investors who had been waiting on the sidelines found a reason to jump back into the market, contributing to the broader uptrend in cryptocurrencies. Bitcoin rose to $69,600, while Ethereum climbed to $3,645. Other meme coins like Bonk, Dogwifhat, and Book of Meme also saw gains. However, these tokens could face a sharp reversal if the Federal Reserve delivers a hawkish decision.

Pepe’s Price Recovery

Pepe’s recent momentum can be attributed to a classic case of buying the dip. The coin had dropped by around 35% from its highest level earlier this week. The rebound occurred in a high-volume environment, with daily trading volume jumping to over $1.28 billion from Tuesday’s $714 million.

Pepe Price Prediction

On the daily chart, Pepe’s price rebounded after the release of weak US inflation data, recovering from its lowest point of $0.00001120 this week. This price was slightly above the crucial support level of $0.00001080, its highest swing on March 14th.

Pepe has now moved above the 23.6% Fibonacci Retracement level, a positive indicator. Additionally, it has surged past the 50-day and 25-day moving averages and the first resistance of the Andrew’s pitchfork tool. Therefore, it is likely that the token will continue to rise as buyers target the next psychological level of $0.00015, which is 10% above the current level. A break above this threshold could see it climb to the year-to-date high of $0.0000172.

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