Pepe Coin’s price has recently attracted investors’ attention due to its strong correlation with Ethereum (ETH), as the ether destruction rate surged by 163%.
As the meme coin rally has gained momentum over the past few weeks, the price of Pepe coin has once again attracted attention from investors. In response to Ethereum, PEPE broke out of a bullish continuation pattern and retested to confirm. The PEPE-ETH correlation could lead to an increase in Ether destruction, stimulating a surge in the price of Pepe coin.
Pepe coin prices rise, ether destruction surges
The daily destruction rate of Ether (ETH) has surged significantly over the past week, according to data from LookonChain.
Historically, the destruction rate trend shows that Ethereum price increases have coincided with spikes in the ETH destruction rate. The recent destruction rate growth exceeds the high point in June, not including the abnormal peak in August.
This information is very interesting for Pepe Coin investors as both assets have shown a high degree of correlation in the past.
According to IntoTheBlock, at press time, PEPE’s 60-day correlation with ETH is 0.92, which is higher than its correlation with Bitcoin (0.84) and higher than 0.91 in June. Correlation values range from -1 to +1. When the reading is close to -1, prices rarely move in the same direction. However, if the reading is close to +1, prices usually move in the same direction. This is the case with ETH and PEPE.
If Ethereum continues to rise, the price of Pepe Coin may also surge. The price of PEPE has increased by 7% in the past 24 hours and is currently trading at $0.000009.
PEPE technical analysis: Next stop is $0.00001250
PEPE price is in the recovery phase after the downtrend, showing a bullish breakout from the ascending triangle pattern. The price rise and breakout of the resistance level indicates further bullish momentum with a key resistance at $0.000001269 and above.
On the other hand, if there is a pullback, PEPE might find support near $0.00000080 and $0.00000070.
The ascending triangle is a continuation pattern, the breakout of which signals an impending uptrend. The measured move (pentagon height) target price is around $0.000001269, representing a potential upside of 45.15% from the breakout level.
If the Pepe coin price drops below $0.00000080, it will indicate market weakness, making the asset bearish. The PEPE price will find lower support near $0.00000070.
