Pepe coin price bounced back this week, hitting the key resistance level at $0.00008035, its highest point since March 3. It has jumped by over 50% from its lowest level in the current calendar year. This article explores why the Pepe price has jumped and why it has more room to grow.
Why Pepe Coin Price Has Surged
Pepe coin has rebounded for both fundamental and technical reasons. Fundamentally, it rallied as the broader financial market embraced a risk-on sentiment due to hopes that Donald Trump’s reciprocal tariffs would not be broad enough. This explains why American equities have rallied in recent days.
Pepe coin price also jumped after several prominent Wall Street analysts turned bullish on the stock market. Analysts from large banking groups like Evercore ISI, JPMorgan, and Morgan Stanley have encouraged their customers to buy the dip, arguing that the market now fully priced the tariff fear. Julian Emmanuel, an analyst at Evercore, said:
“We think the two steps backward portion we lived through is in the process of resolving itself, and you’re likely to get three steps forward toward higher prices.”
In their recent notes, these analysts did not mention crypto. However, historically, crypto prices tend to track the performance of stocks since they are both classified as risky assets, typically experiencing correlated price movements.
Pepe has also jumped due to the gradual rise in futures open interest, which signals rising demand. The open interest level has risen to $273 million, its highest level since February 13. It is also much higher than this month’s low of $166 million.
Pepe Coin Price Technical Analysis
The ongoing Pepe price action aligns with what BanklessTimes predicted in prior articles, here and here. In these articles, we noted that the coin was slowly forming a falling wedge pattern characterized by two sloping and converging trendlines. These two lines have now converged, which explains why it has recently rebounded.
Notably, these two lines converged at a crucial support level, which it has failed to move below several times since 2024. That is a sign that it has formed a double-bottom pattern whose neckline is at $0.00002835.
The Pepe coin also formed a bullish divergence pattern, as upward movements in the MACD and Relative Strength Index (RSI) occurred in contrast to its falling price. Therefore, it will likely continue rising as bulls target the key resistance point at $0.00001193, its highest swing in September last year, about 50% above the current level.
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