Here’s why Pepe coin price went parabolic
Pepe coin price is ending 2024 on a high note as it surged by almost 20%, erasing some of the losses made this month.
Pepe (PEPE), the third-biggest meme coin, climbed to a high of $0.000022, its highest level since Dec. 18. The rebound came after Elon Musk, the wealthiest person in the world, updated his X profile picture to a Pepe-like image.
Musk, one of the most influential people globally, has over 234 million followers on X, close ties with Donald Trump, and a fortune of nearly half a trillion dollars.
His action could indicate growing interest in Pepe, similar to his previous engagement with Dogecoin (DOGE). Musk’s tweets about Dogecoin in 2020 preceded its public surge in 2021, helping DOGE become the largest meme coin with a market cap of over $47 billion.
Pepe has experienced remarkable growth since its inception in 2023, with its market cap soaring from near zero to a peak of over $10 billion earlier this month. The token has surged by nearly 1,500% in the past year, ranking it among the best-performing meme coins.
Pepe has created significant wealth for many investors. According to IntoTheBlock, 70% of all holders, or about 178,000 people, are in profit, while 24% have incurred losses. The remaining investors are at breakeven.
Pepe Coin price analysis
The daily chart shows that Pepe coin price peaked at $0.00002833 earlier this month before pulling back. It bottomed at $0.0000145, which coincides with the 50% Fibonacci Retracement point, and formed a hammer pattern. This pattern, characterized by a small body and a long lower shadow, is often a bullish signal.
Pepe has now climbed above the key resistance level of $0.00001950, its highest swing on Dec. 24. It is also trading above the 200-day and 100-day moving averages.
Given these bullish indicators, Pepe is likely to continue rising, with bulls targeting the year-to-date high of $0.00002833, which represents about a 33% upside from the current level. Potential catalysts for further gains include Donald Trump’s upcoming swearing-in and the expected FTX distributions. Some of the $16 billion from the distributions may be reinvested into cryptocurrencies, potentially boosting Pepe.
