On June 12, Pepe saw a notable rise of 17.85%, reaching $0.00001340 after forming a local low at around $0.00001300, as previously anticipated by Cointelegraph.
This upward movement was accompanied by a surge in trading volumes, indicating stronger trader conviction and the potential for further upward momentum.
Three key indicators suggest a bullish outlook for PEPE, predicting a possible 50% price increase by the end of June. Let’s delve into these potential catalysts.
As of June 11, PEPE’s price hovered near the lower trendline of its rising wedge pattern, suggesting potential support and a likely rebound toward the upper trendline at around $0.00002661, which represents a 70% increase from current levels.
Rising wedges typically break below the lower trendline with increased trading volume, leading to a significant drop.
However, PEPE’s current rebound from the trendline suggests that such a breakdown is not imminent.
Two critical support levels bolster this potential rebound: the 50-day exponential moving average (50-day EMA) and the 1.0 Fibonacci retracement line.
However, if PEPE breaks below this support confluence, it could trigger a bearish scenario, with potential downside targets ranging between $0.00000283 and $0.00000642 by the end of June or into July, depending on the breakdown point.
Whale accumulation signals market confidence.
The percentage of PEPE supply held by the largest investors—those holding 1 billion or more—remains stable, fluctuating around 96.02%, indicating that these investors are not significantly altering their positions during June’s price correction.
READ MORE: EU Election Results Set to Shape Future of Cryptocurrency and Blockchain Regulation
Smaller holders, with 10 million to 100 million PEPE and 1 million to 10 million PEPE, have been actively accumulating during price dips, suggesting increased participation and confidence among retail investors.
The increasing percentage of smaller and mid-sized PEPE holders indicates broadening interest and strategic accumulation in the market, boosting its upside prospects in June.
PEPE’s potential for a 50% rally by June’s end is further supported by expectations that the Federal Reserve may cut interest rates in September.
According to UBS Chief Strategist Bhanu Baweja, Fed chairman Jerome Powell may opt to cut rates earlier than anticipated due to rising unemployment, which reached 4% in May from 3.9% in April.
Bond traders have also increased their bets for a 250 basis point rate cut in September, with probabilities rising to 50% ahead of the Federal Open Market Committee’s (FOMC) meeting on June 12, up from 48.6% a month ago.
These bets have led to a sharp decline in Treasury yields ahead of the FOMC meeting, with the benchmark 10-year note falling 180 bps in a day.
Lower bond yields increase the opportunity costs of holding non-yielding risk assets like cryptocurrencies, potentially increasing traders’ appetite for memecoins like Pepe, Dogecoin, and Bonk in June.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
