After the rebound triggered by Elon Musk, the PEPE price has risen again after a decline, and the indicators for this token suggest that more increases are likely in the future.
With the broader cryptocurrency market experiencing a much-needed recovery, Pepe has risen 7% in the past 24 hours to $0.0000207.
PEPE has struggled for most of the past week, but the New Year's Day rebound has helped it make up for lost time, with the meme token currently up 18% over the last 7 days.
However, the index has only risen 1% in a month, raising questions about whether it can return to the historic high set in early December during the post-election bull run.
Recently, Elon Musk has driven up Bitcoin prices by briefly using Pepe in his X avatar, and it seems Bitcoin is set for a strong rise this year.
As the Musk effect fades, PEPE's upward momentum stagnates — is this the beginning of a larger decline?
In the days leading up to New Year's, PEPE faced difficulties, and Christmas failed to bring any festive cheer to the token.
The digital asset has only started to recover since Elon Musk changed his X avatar to an image of Pepe.
Interestingly, PEPE fell again after the rebound triggered by Musk, but has risen 7.5% since hitting a 24-hour low of $0.00001915.
PEPE's 24-hour trading volume reflects this new momentum, rising from $2 billion to $2.3 billion in just a few hours this morning.
Its chart currently shows encouraging signs, with its relative strength index (purple) rebounding to 70, indicating buying pressure.
We have also seen the 30-period moving average (orange) continue to rise after climbing above the 200-period moving average (blue) on New Year's Eve.
Overall, this indicates that PEPE has re-entered a growth phase, just like other markets.
In addition to the recent overselling, there are other fundamental reasons, the most obvious of which is the impending inauguration of Donald Trump in the U.S.
Although some warn that this might be an event for profit-taking, it will mark the beginning of a positive period for cryptocurrencies.
With Paul Atkins becoming the chairman of the U.S. Securities and Exchange Commission, the SEC may not only change its stance on cryptocurrencies, but Congress may also push for legislation supporting cryptocurrencies, while Trump himself may issue bullish executive orders within his first few days in office.
Against this backdrop, PEPE is likely to rise like any other meme coin, with its holdings continuing to grow steadily.
It could reach $0.0000250 in the coming weeks, and possibly $0.000035 by the second quarter.
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