Can the Pepe coin price rise 35% as smart money holders sell?

Pepe coin price continued its strong recovery after tumbling to a monthly low of $0.0000144 in December.

Pepe (PEPE), the third-largest meme coin in crypto, rose to a high of $0.00002175, its highest level since December 18. The token has jumped by approximately 50% from its December low.

Pepe’s rebound aligns with the broader recovery in meme coins. Dogecoin (DOGE), the largest meme coin, has surged by over 20% in the last seven days, while ai16z, Fartcoin, and SPX6900 have all soared by more than 50%. The total market cap of all cryptocurrencies has now risen to over $125 billion.

Pepe’s surge also coincides with signs of accumulation. According to data from Nansen, the total number of tokens held on exchanges has dropped by 0.70% over the past week to 235.85 trillion. The total supply on exchanges has now retreated to 56%.

However, a key risk remains that smart money participation in Pepe has declined in recent weeks. Nansen data shows that the number of smart money holders has dropped from 107 in November to 87 today.

The number of tokens held by these investors has also fallen, hitting a low of 6.9 trillion tokens, the lowest level since January last year.

One possible reason for this decline is that many meme coin investors have started diversifying into other tokens. Additionally, there are now thousands of meme coins, with newer projects like Pudgy Penguins, Fartcoin, and Peanut the Squirrel gaining market share.

Pepe coin price analysis

The daily chart shows that Pepe bottomed at $0.0000144 in December, forming a hammer candlestick pattern. This pattern features a small bullish body with a long lower shadow and is often seen as a reliable reversal signal.

This hammer pattern was significant as it formed part of a break-and-retest setup, where the token fell to $0.00001720, the upper side of a cup and handle formation.

Pepe has also remained above the 50-day and 200-day Exponential Moving Averages, which is considered a positive sign. Additionally, the token is crossing the weak stop-and-reverse point on the Murrey Math Lines indicator.

Therefore, the coin will likely continue rising, with bulls targeting its all-time high of $0.00002840, which is about 35% above the current level. A move above that level could push the price to the extreme overshoot point of $0.00002980.