TLDR
- Pepe Coin (PEPE) surged almost 5% in value in the last 24 hours, offering some optimism after a recent decline.
- Coinbase International Exchange announced the listing of PEPE perpetual futures contracts, potentially increasing liquidity and triggering a price surge.
- PEPE’s trading volume declined by $3.1 billion since its recent price correction phase began, indicating waning selling pressure.
- Technical analysis suggests PEPE price is approaching a significant support level and could reverse its downtrend.
- Analysts predict PEPE might reach new all-time highs above $0.00002 in June 2024 if bullish momentum returns.
Pepe Coin (PEPE), a prominent memecoin project hosted on the Ethereum blockchain, has been making waves in the crypto markets recently.
After facing a price decline in the past week, PEPE managed to regain some ground and surge almost 5% in value over the last 24 hours.
This price surge comes on the heels of an announcement from Coinbase International Exchange, the offshore arm of the popular crypto exchange Coinbase.
Coinbase International Exchange unveiled its decision to list PEPE perpetual futures contracts, allowing traders to speculate on the future price of PEPE using contracts without a set expiry date.
The introduction of PEPE perpetual futures on a major exchange like Coinbase International Exchange is expected to increase liquidity and potentially trigger a price surge for the memecoin.
Traders can now use leverage to control larger positions in PEPE with smaller amounts of capital, amplifying potential gains but also magnifying losses. Additionally, the futures contracts can be used for hedging purposes, protecting traders from price swings.
Despite the recent price surge, PEPE’s trading volume has experienced a significant decline of $3.1 billion since its price correction phase began.
This decline in trading volume, faster than the price dip, suggests that sellers are becoming increasingly unwilling to sell as the price falls further.
According to analysts, this rapid decline in trading volume compared to the price dip is often considered an early signal of an imminent bullish reversal.
It indicates that most traders who wanted to book profits have already sold at the top, and the selling pressure is weakening, signaling that the market might be approaching a bottom.
Technical indicators support this analysis, as PEPE’s price is now approaching a critical support territory at the 20-day Simple Moving Average (SMA) price level of $0.0000138.
After a 19% decline in the last 10 days, bulls on the sidelines might consider this an opportune time to enter new positions.
If PEPE’s price heads into another rally as predicted, the current all-time high of $0.00017 remains the main short-term resistance cluster to beat.
If the bulls can generate sufficient momentum, PEPE could potentially hit new peaks above the $0.00002 mark in June 2024, according to analysts.
