Pepe price continued its recovery on Monday, jumping to its highest point in over a month. This rally happened as Bitcoin surged to a record high, triggering more demand for altcoins from market participants.
Pepe Coin jumped to a high of $0.000025, up by over 52% from its lowest level in June. This article explains why the token may continue to surge as exchange reserves decline and whale demand increases.
Pepe Price Boosted by Whale Accumulation
Santiment data shows that whales have continued to accumulate Pepe Coins this month.
As the chart below shows, holders with between 10 million and 100 million Pepe coins have increased their holdings to over 4.07 trillion tokens, up from 3.9 trillion today. Additional data show that the supply held by top investors has continued to rise.
Meanwhile, the supply held in exchanges has continued to fall and reached a low of 98.9 trillion, down from 214 trillion in August last year.
Plunging exchange balances are a bullish factor because it means that investors are moving their coins to their self-custody wallets, a sign that they expect the price to keep rising.
Another data shown below is the fact that the MVRV indicator has continued rising and has just exited the negative zone. The MVRV indicator is one of the best tools used to identify whether an asset is undervalue or overvalued.
The MVRV indicator has remained below zero recently, meaning that it has been highly undervalued. It has now exited the sub-zero level and is pointing upwards, a sign of bullish momentum.
The ongoing Ethereum price surge is also expected to boost the Pepe price. ETH has jumped to $3,000, and the odds of it reaching $4,000 have jumped. Such a move will increase the value of tokens in its ecosystem, including Pepe and Shiba Inu.
Pepe Coin Price Technical Analysis
The daily chart shows that the Pepe price has rebounded in the past few days. This rally happened after the token formed a falling wedge pattern, a popular bullish reversal sign. It has already moved above the upper side of this pattern recently.
The MACD indicator has formed a bullish reversal and moved above the zero line. Additionally, the Relative Strength Index (RSI) and the MACD indicators have all trended upward.
Therefore, Pepe price will likely continue rising as bulls target the key resistance at $0.00001625, the upper side of the wedge pattern. A move above that level will point to more gains, potentially to the psychological point at $0.00001625.
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