Pepe coin price continued its strong recovery after dropping to a monthly low of $0.0000144 in December.
Grandpa (PEPE), the third largest coin in crypto, hit a high of $0.00002175, its highest level since December 18. The token has surged about 50% from its December low.
Pepe’s rebound aligns with the broader recovery in meme plays. Dogecoin (DOGE), the largest meme coin, has surged more than 20% in the past seven days, while ai16z, Fartcoin and SPX6900 have all climbed more than 50%. The total market capitalization of all cryptocurrencies now stands at over $125 billion.
Pepe’s momentum also coincides with signs of accumulation. According to Nansen data, the total number of tokens held on exchanges fell 0.70% over the past week to 235.85 trillion. Total supply on exchanges has now fallen to 56%.
However, the main risk remains that the participation of smart money in Pepe’s capital has diminished in recent weeks. Nansen data shows the number of smart money holders increased from 107 in November to 87 today.
The number of tokens held by these investors also declined, reaching a low of 6.9 trillion tokens, the lowest level since January last year.
A possible reason for this decline is that many coin investors began to diversify into other tokens. Additionally, there are now thousands of meme coins, with newer projects like Pudgy Penguins, Fartcoin and Peanut the Squirrel gaining market share.
Pepe Coin Price Analysis
The daily chart shows that Pepe bottomed at $0.0000144 in December, forming a hammer candlestick pattern. This pattern features a small bullish body with a long lower shadow and is often considered a reliable reversal signal.
This hammer pattern was important because it was part of a breakout and retest pattern, where the token fell to $0.00001720, the upper part of a cup and handle formation.
Pepe has also remained above the 50-day and 200-day exponential moving averages, which is considered a positive sign. Additionally, the token crosses the weak breakout and reversal point of the Murrey Math Lines indicator.
Therefore, the coin will likely continue to rise with bulls targeting its all-time high of $0.00002840, which is approximately 35% above the current level. A breach of this level could push the price to the extreme overshoot point of $0.00002980.