Key takeaways
- Pepe continues its gains on Wednesday, extending its rise from the 50-day moving average.
- Derivatives data shows retail activity rising as risk sentiment returns to the market.
Pepe (PEPE) is seeing a steady rise on Wednesday, trading in the green for the third day in a row. The frog-themed meme coin is gaining momentum as broader market sentiment improves, increasing retail demand for meme coins.
Market sentiment boosts demand for coins
The broader market’s upside, despite ongoing geopolitical tensions surrounding the US-Iranian blockade of the Strait of Hormuz and faltering peace talks, is fueling retail interest in memecoins.
According to CoinMarketCap, the Fear and Greed Index reached 62 on Wednesday, showing a steady rise in risk appetite since the ceasefire announcement between the US and Iran.
On the derivative side PEPE Futures Open Interest (OI) Its value is $213.25 million, an increase of 7% in the last 24 hours.
This increase in futures positions indicates increased trader participation, in line with the rebound in the spot price – supporting the bullish outlook for PEPE.
Baby is testing the breakout of the key resistance level
The 4-hours chart of PEPE/USD is bullish and active as Pepe’s short-term recovery remains intact, with a three-day recovery from the 50-day Exponential Moving Average (EMA) at $0.00000368.
However, PEPE is still trading below the 100-day and 200-day EMAs, which could cap a continued rally.
The Relative Strength Index (RSI) at 60 is trending above the midline, indicating moderate positive momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) remains above its signal line, keeping the chart bars positive.
At the time of writing, PEPE is trading at $0.00000393. If the rally continues, PEPE should break the downtrend line near $0.00000400, near the 100-day moving average at $0.00000404.
A break above this level could pave the way for a rally towards the 200-day moving average around the psychological resistance of $0.00000500.
On the downside, the 50-day moving average at $0.00000368 provides immediate dynamic support, with further downside protection at the February 6 low of $0.00000311.
