Pepe’s Price Surge Amid Growing CEX Outflows: What’s Driving the Rally?
Pepe, the third-largest meme coin, has recently experienced a significant surge in price, reaching its highest point in over a month. This surge was accompanied by a notable decrease in balances held on centralized exchanges, indicating a shift towards investors holding the coin in their own custody.
The price of Pepe (PEPE) soared to a high of $0.0000091, pushing its market cap to over $3.8 billion. This recovery coincided with similar price movements in other meme coins such as Shiba Inu (SHIB), Dogwifhat (WIF), and Mog Coin, all of which saw gains of over 10%. In fact, the market cap of all meme coins tracked by CoinGecko rose by almost 7% in the 24 hours leading up to September 26, reaching a total of $50 billion.
One of the main drivers behind this rally was the recent interest rate cut by the Federal Reserve, along with indications that more cuts could be on the horizon. Additionally, China, the second-largest economy in the world, announced its largest stimulus package since 2020, including a potential $142 billion capital injection to boost the economy. These factors have contributed to a positive sentiment in the cryptocurrency market, leading to increased investment in meme coins like Pepe.
CEX Outflows and Investor Sentiment: A Closer Look at the Numbers
According to data from Nansen, there has been a notable increase in outflows from centralized exchanges for Pepe. On September 26 alone, Pepe saw outflows totaling $4.2 million, which is a significant 6x increase compared to the average outflows. This trend suggests that more investors are opting to hold their Pepe tokens in their personal wallets rather than leaving them on exchanges.
In the past seven days, the total supply of Pepe on exchanges has decreased by 0.35%, indicating a growing interest in holding the coin for the long term. This shift in investor behavior towards self-custody is often seen as a bullish sign for the asset, as it suggests a higher level of confidence and commitment from holders.
Furthermore, the surge in futures open interest for Pepe, reaching $129 million, is another indication of growing investor interest in the coin. This level of open interest is the highest it has been since August 2, reflecting a renewed appetite for trading and speculation in the Pepe market.
Technical Analysis: Pepe’s Price Movement and Key Levels to Watch
On the daily chart, Pepe has shown resilience by bouncing back after retesting the ascending support that connects the lowest swing since April. The coin has managed to climb above the 50-day moving average and retest the 50% Fibonacci Retracement point at $0.0000090. Additionally, Pepe has approached the major support/resistance level of the Murrey Math Lines at $0.0000090 and the Ichimoku cloud indicator.
The next key level to watch for Pepe’s price movement is $0.00000987, which marks its highest swing on August 4 and the top of Murrey’s trading range. A successful break above this level could potentially propel Pepe towards its next target of $0.0000108, which was its high point in March.
Overall, the recent price surge and technical indicators suggest that Pepe is approaching a critical juncture in its price movement. Investors will be closely monitoring key levels and market dynamics to gauge the coin’s future trajectory.
