Pepe Coin price has rebounded to its highest point in three weeks, driven by emerging signs of accumulation and a broader recovery in Bitcoin and other altcoins ahead of the Federal Reserve's interest rate decision. The token has formed an inverse head-and-shoulders pattern and has moved above the Supertrend indicator, suggesting a potential bullish breakout as exchange reserves decline.
Pepe (PEPE) has risen to the psychological level of $0.0000050, marking a 28% increase from its November lows and boosting its market capitalization to over $2.1 billion. On-chain metrics and technical indicators point towards a brief rebound for the Pepe Coin price in the upcoming weeks. A significant indicator of this trend is the substantial decrease in the amount of Pepe tokens held on exchanges over the past few days.
The supply held on exchanges has fallen to 261.6 trillion tokens, down from a high of 276 trillion earlier this month. This indicates that more than 15 trillion tokens, valued at over $75 million, have been moved to self-custody, which is considered a bullish signal. This trend mirrors similar movements observed in other tokens, such as Chainlink and Shiba Inu.
The current surge in Pepe's price is occurring as market participants closely watch the Federal Reserve's upcoming interest-rate decisions. A potential interest rate cut by the Federal Reserve, accompanied by a dovish statement, would typically favor riskier assets like Pepe and other meme coins.
Furthermore, there are indications that the recent decline in Pepe's futures open interest has reached a bottom. Data from CoinGlass shows that open interest has been on the rise over the past few days, increasing to $255 million today, December 9th, from a November low of $174 million. A rebound in open interest would be a positive sign for Pepe, signifying renewed demand.
Pepe Coin Price Technical Analysis
Analysis of the four-hour chart reveals that the Pepe price has begun to recover after hitting a low of $0.000003950 earlier this month. The token has now moved slightly above the Supertrend indicator, a technical development that often precedes a rebound.
Pepe has also traded above the 50-period Exponential Moving Average and has formed an inverse head-and-shoulders pattern, a widely recognized bullish reversal signal. The Relative Strength Index (RSI) has shown a consistent upward trend and is approaching overbought territory.
Consequently, the most probable scenario suggests a continued upward movement for Pepe, with the next significant target identified at $0.0000063, approximately 27% above its current price. This target level aligns with the peak price observed on November 11th. A price decline below the right shoulder of the pattern, situated at $0.0000043, would invalidate this bullish outlook.