Pepe Coin price staged a strong comeback this week, and several reasons point to a parabolic move in the coming weeks. The token jumped to a high of $0.00001458, its highest point since May 29, and 77% above its lowest point in June. Here are some of the top reasons why the Pepe price is about to surge.
Pepe Coin Price Has Formed a Golden Cross Pattern
The primary reason the Pepe Coin price may continue to surge is that it has formed a golden cross pattern. This pattern happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other. This pattern often points to more gains over time.
Pepe has moved to the 38.2% Fibonacci Retracement level and flipped the top of the trading range of the Murrey Math Lines. The Relative Strength Index (RSI) and the MACD have all pointed upwards.
Therefore, the token is likely to continue rising as bulls target the key resistance point at $0.00001633, the highest swing point on May 23rd. A move above that level will indicate further gains, potentially reaching the extreme overshoot point at $0.0000208. This target is about 61.8% Fibonacci Retracement point.
The bullish Pepe price forecast will become invalid if the price drops below the major support and resistance (S/R) pivot point at $0.00001192.
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Ethereum Price Surge to Boost Pepe
Another reason the Pepe price is expected to continue rising is the ongoing surge in Ethereum prices. The Ethereum price soared to over $3,800, and technicals suggest that it has more gains ahead, potentially reaching $4,000.
The soaring Ethereum token price is bullish for Pepe because it is the second-largest meme coin in its ecosystem. Historically, ERC meme coins have performed well when ETH is surging and have dropped when it is in a downtrend.
The same normally happens in the Solana ecosystem, where its meme coins jump when the SOL price is soaring.
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Pepe Whale Accumulation and Falling Balances
Furthermore, the Pepe Coin price is likely to continue soaring as whales continue to accumulate. Data show that whales have increased their holdings to over 9.05 trillion, up from 8.21 trillion as of July 9. This means that they have bought over 840 billion tokens in less than two weeks.
The top 100 addresses have increased their holdings to 305.69 trillion, up by 2.45% in the last 30 days. At the same time, the supply of Pepe tokens on exchanges has dropped to 250.65 trillion, down from 258 trillion on the same day last month.
Falling exchange balances are a sign that its demand is rising and that investors are no longer selling.
