PEPE Price Rallies 300% as Ethereum Crossed $4k: More Gains Ahead?

PEPE price has benefited immensely from the capital inflows entering the Ethereum’ ecosystem in recent weeks. After a blistering performance in first 10 days of March 2024, market data shows that speculative traders are anticipating even more gains. 

Is PEPE price on the verge of erasing another zero and advance towards $0.000015?

PEPE Price Has Benefited from Ethereum’s Resurgence

PEPE is a prominent memecoin hosted on the Ethereum blockchain network. Since the memecoin rally began in mid-February, PEPE has been a staple on the crypto top-gainer’s list.  On March 8, Ethereum price broke above $4,000 bringing its market capitalization to $475 billion. 

PEPE price has benefited immensely from the capital inflows entering the Ethereum’ ecosystem in recent weeks. After a blistering triple-digit rally in February, PEPE has made another 300% gains in the first 10 days of March 2024. 

But interestingly, after nearly a month of relentless uptrend, the majority of PEPE speculative traders are still betting on further price gains. 

CryptoQuant Funding Rates metric, presents a daily aggregate of fees paid between active traders of perpetual futures contracts for a specific cryptocurrency.

The chart below, shows that PEPE Cryptoquant’s Funding Rate has been trending at elevated values since February 26. At press time on March 10, its rose as high as 0.09% within the daily timeframe.

Typically, a prolonged uptick in Funding Rates suggests that traders are overwhelmingly positive and propping up their positions with highly leveraged bullish bets. 

This surge in optimism can propel prices higher as traders fuel the market with their positive outlook. Furthermore, high trading volumes in the PEPE spot during a period of bullish momentum is a signal of increasing market demand. 

The cascading effect of the high funding rate and rising trading volume could combine to further amplify the price rally. 

Forecast: PEPE Price Set to Erase Another Zero

However, given the rapid capital inflows and positive sentiment from memecoin traders and Ethereum network stakeholders. PEPE price rally is likely to erase another zero and advance towards $0.00001.

 

IntoTheBlock’s global in/out of money data which categorizes existing PEPE holders by their entry prices also affirms this outlook. 

 

It shows that with PEPE currently trading at $0.000009 at press time, about 89% of current holders are now in profit positions. Majority of them may be reluctant to sell, thereby amplifying the rally as market demand grows. 

In essence, the bulls could smash the next resistance of 11,360 addresses that acquired 42 trillion PEPE at the maximum price range of $0.000010 and advance towards $0.000015. 

In the event of a bearish reversal, the bulls can find short-term support at the $0.000007 area.