Three Reasons Behind PEPE's 32% Surge
The price of Pepecoin (PEPE) has seen a remarkable increase over the past few days, accumulating gains of 32% for the week. According to CoinGecko, PEPE reached a peak of $0.00001242, marking a 6% rise on Wednesday, July 17.
Despite a 5% drop in trading volume, the market managed to sustain new price gains, indicating robust demand amidst lower activity.
Major Investors Buy PEPE
The first factor driving PEPE’s value is the influx of major investors. Over the past seven days, "PEPE whales" have been buying at an accelerated pace, reducing the available supply and creating scarcity. A notable transaction was by venture capital firm Nascent, which sold its Maker (MKR) token holdings to purchase over 100 billion PEPE and some LDO tokens, spending a total of $1.57 million on PEPE. Nascent now holds 608.85 billion PEPE, equivalent to $7.49 million.
Influence of Ethereum ETF Approval
The second factor boosting PEPE’s price is the “preliminary approval” by the U.S. Securities and Exchange Commission (SEC) for Ethereum (ETH) ETFs. This has led to broader market acceptance of blockchain-based assets, particularly those related to Ethereum, benefiting PEPE as one of the first to gain from this development. Increased liquidity and public exposure due to Ethereum ETFs are expected to continue driving PEPE’s price upward as more investors recognize its potential.
Increase in Open Interest Rates
Lastly, the open interest in PEPE derivatives contracts has also grown, highlighting increased trader commitment and speculation on future price movements. Despite a 12% decline in volumes, the total contracts rose by 2%, reaching $138 million.
Technical indicators show a bullish trend for PEPE on the 4-hour chart. The Relative Strength Index (RSI) is at 64, nearing overbought territory, while the Moving Average Convergence Divergence (MACD) indicates a bullish crossover, suggesting growing momentum that could sustain PEPE’s short-term price appreciation.
