Pepe price has staged a strong comeback in the past few days, reaching its highest level since January 29. It has rebounded by over 60% from its lowest level this year, mirroring the ongoing recovery of top altcoins like Shiba Inu, Pi Network, and Shiba Inu. So, will the Pepe price continue soaring?
Pepe Coin Price Prediction: Technical Analysis
The daily chart shows that the Pepe price has rebounded in the past few days. This rebound started when the token bottomed at $0.0000036 earlier this month. It then accelerated this weekend after the US released the encouraging consumer inflation report, which showed that the headline and core inflation dropped in January this year.
The coin’s rebound also happened after forming a double-bottom pattern at $0.0000036, its lowest level in December last year and February this year. This pattern is one of the most common bull reversal signs in technical analysis.
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The token has now moved above the 50-day Exponential Moving Average (EMA), while the Relative Strength Index has pointed upwards. Therefore, the most likely Pepe Coin price prediction is bullish, with the next key target being at $0.00000722, its highest level in January this year. This target is about 47% above the current level.
The bullish Pepe price forecast will remain as long as it is above the double-bottom level at $0.0000036.
Pepe price chart | Source: TradingView
Why Pepe Price is Soaring
The main reason why the value of Pepe is soaring is that the broader crypto market is thriving today, with Bitcoin and most altcoins being in the green. Bitcoin has moved above the key resistance level at $70,000, while top altcoins like Zcash and HBAR being in the green.
The coin has also soared because of the rising demand from investors. Data compiled by CoinMarketCap shows that the volume of Pepe traded in centralized and decentralized exchanges jumped to over $1 billion in the past 24 hours. Soaring volume when an asset is in an uptrend is a sign of robust bullish demand.
The same is happening in the futures market, where the open interest has jumped to over $300 million, the highest level since January 30th this year. It has jumped from a low of $194 million this month, a trend that may continue in the coming days.
Like with the spot volume, the rising open interest is a sign of more demand. This surge has also coincided with the highly positive funding rate, which is a bullish sign.
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