11 Jul
11Jul

PEPE, the popular memecoin, has experienced a significant 17% surge in the past 24 hours, outperforming many altcoins. This impressive rally is attributed to a confluence of factors: Bitcoin reaching a new all-time high of $116,000 on July 10, a crucial technical breakout for PEPE, and aggressive accumulation by large investors, known as "whales."

Bitcoin's climb to its highest level since mid-May has rekindled speculative interest across the crypto market. As traders reallocated capital into higher-beta assets, memecoins like PEPE and Dogecoin witnessed substantial gains, with PEPE leading at 17% and Dogecoin following with a 6.7% rise. The broader cryptocurrency market capitalization increased by 6.23%, while derivatives trading volume surged by an astounding 87%, according to CoinMarketCap. Historically, memecoins have demonstrated a strong correlation with Bitcoin-led rallies, a dynamic reinforced by PEPE's latest move, reflecting heightened risk appetite and speculative inflows.

Falling Wedge Breakout Signals Bullish Reversal

PEPE's technical chart structure turned decisively bullish on July 10, as its price successfully broke out of a falling wedge pattern after weeks of sideways consolidation. This breakout typically signals a bullish reversal and is supported by key technical indicators:

  • Relative Strength Index (RSI 14) at 65.13 suggests ample room for continued upside before becoming overbought on this timeframe.
  • The Moving Average Convergence Divergence (MACD) flashed a bullish crossover, accompanied by rising histogram bars, indicating strengthening bullish momentum.
  • PEPE's price successfully cleared the 23.6% Fibonacci retracement level ($0.0000122), with the next significant resistance now eyed at the 127.2% extension level ($0.00001479).
  • A dramatic 123% jump in trading volume to $1.34 billion validated the breakout, confirming strong market participation and conviction behind the move.

Whale Accumulation Fuels Supply Pressure

On-chain data from Santiment reveals that large holders, or "whales," have been aggressively accumulating PEPE. Between June 29 and July 9, these whales acquired over 9 trillion PEPE tokens, valued at more than $90 million. This substantial accumulation led to a 2.9% reduction in the token's supply on exchanges, effectively tightening the available float and creating significant buy-side pressure.

Currently, the top 10 PEPE holders collectively control 37.5% of the total supply, a concentration that can exert considerable influence on price action. Furthermore, open interest in PEPE futures climbed by 24.9% in 24 hours, indicating a sharp increase in leveraged bullish positions in the derivatives market.

Outlook: Can PEPE Sustain Its Rally?

Despite the 7-period RSI hitting 79.79, which suggests short-term overbought conditions, the combination of a confirmed technical breakout, persistent whale accumulation, and strong tailwinds from Bitcoin's rally provides PEPE with a robust near-term bullish setup. Traders are now closely watching the $0.000014 level as the next potential target. However, the sustainability of this rally will heavily depend on Bitcoin maintaining its position above the $116,000 threshold without experiencing significant profit-taking pressure.

July 2025, Cryptoniteuae

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