Pepe [PEPE] recently witnessed a major price drop, causing it to mark an exit from the list of the top 100 cryptos. However, the winds turned in the memecoin’s favor over the last few days. Buying pressure on the coin also increased, suggesting a further hike in its price.
Investors are buying PEPE again
A few weeks ago, PEPE lost a lot of its market capitalization, which raised concerns related to the legitimacy of the memecoin. Nonetheless, things were quick to change.
Notably, Lookonchain’s 29 September tweet revealed that two fresh wallets spent a total of $801k to buy 1.08 trillion PEPE. This clearly indicated that investors still had faith in the memecoin and expected it to recover in the days to come.
A further look at Santiment’s data pointed out that buying pressure on PEPE was high, as evident from the spike in its exchange outflow. This fact was further established upon a check on its supply.
The coin’s supply on exchange also declined over the last week, while its supply outside of exchange climbed.
Surprisingly, while investors’ confidence in the memecoin was high, whales still had doubts as the memecoin’s supply held by top addresses dropped last week.
PEPE is pumping again
The increase in buying pressure has already started to show its effects on the coin’s price action. According to CoinMarketCap, PEPE was up by more than 10% in the last 24 hours alone.
At the time of writing, the memecoin was trading at $0.000000807 with a market capitalization of over $316 million.
The good news was that the price uptrend was accompanied by a rise in trading volume, which acted as a foundation for the surge. Though the uptrend was encouraging, a look at PEPE’s daily chart provided a better understanding of whether the memecoin will sustain the momentum.
The MACD remained in the buyers’ favor as it displayed a bullish crossover. PEPE’s Chaikin Money Flow (CMF) and Relative Strength Index (RSI) both registered upticks, increasing the chances of a continued uptrend.
However, the memecoin’s Money Flow Index (MFI) was near the overbought zone, which could increase selling pressure in the coming days.