Pepe price rises 10% as $470 million in market capitalization comes in, but a 5% crash may be imminent
|- Pepe price is up almost 10% in the last 24 hours, after an unexpected rise on August 8 in the afternoon of the US session.
- The surge has catapulted Pepe coin market cap around 7% to approach the $470 million market capitalization mark.
- However, PEPE must record a 4-hour candlestick close above $0.000001362 for a confirmed uptrend.
Pepe price turned bullish during the afternoon of the US session, recording a surge that had not been seen in a while. The rally comes despite the lack of activity on the meme coin’s social media network, raising eyebrows about what may have sparked the surge.
Pepe coin price rises 10% after prolonged stagnation
Pepe price recorded a 10% surge on August 8, rising from $0.000001102 to an intra-day high of $0.000001230 in an unexpected move considering the recent mute in the network’s social media. While the surge catapulted the recently sensational meme coin to the $470 million mark in market capitalization, the breakout appears unsustainable, meaning a correction may be imminent.
At the time of writing, Pepe price is confronting the 50-day Exponential Moving Average (EMA) at $0.000001190. An increase in selling pressure above this level could see the dethroned king of meme coins ascend to breach the $0.000001212 resistance level to collect buy-side liquidity.
Credit to liquidity collection’s unique ability to stabilize the market, Pepe coin could extend north, potentially tagging the 100-day EMA at $0.000001260 or, in a highly bullish case, tag the 200-day EMA at $0.000001339.
The Relative Strength Index (RSI) is moving up, while the Awesome Oscillators (AO) histograms are soaked in green and edging toward the positive, suggesting rising momentum.
PEPE/USDT 4-hour chart
On the flip side, Pepe price bullish outlook seems unsustainable, and the uptrend could prove premature. The ensuing selling pressure could see the frog-themed meme coin retrace toward the $0.000001127 support level or, in the dire case, extend a leg south to tag the $0.000001036 support floor.
On-chain metric
Data from IntoTheBlock’s Global In/Out of the Money (GIOM) chart shows robust resistance between the $0.000001000 to $0.000002000 range. Any efforts by the bulls to break the price from this range would be met by selling pressure from 37,840 addresses which bought approximately 205.19 trillion PEPE tokens at an average price of $0.000001000.
PEPE IntoTheBlock
Cryptocurrency metrics FAQs
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
What is market capitalization?
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
What is trading volume?
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
What is funding rate?
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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