Pepe’s 70% Surge: 3 Reasons Why by July

Two days after hitting a local low near $0.00001300, Pepe surged by 17.85%, as earlier predicted, and as of June 12, it was trading around $0.00001340. This resurgence was accompanied by a significant increase in trading volumes, indicating a stronger commitment among traders and potentially fuelling further upward momentum. At least three indicators suggest a robust bullish outlook for the PEPE market, hinting at a possible 50% price rise by the end of June. Let’s delve into these potential catalysts.

Firstly, PEPE is currently exhibiting a rising wedge pattern, which implies a potential 70% gain. On June 11, PEPE was near the lower boundary of its ascending wedge, suggesting a likely rebound toward the upper boundary at approximately $0.00002661. Rising wedges usually lead to a price drop when the price breaks below the lower trendline with increased trading volume, but PEPE’s current upward movement from the trendline suggests that such a breakdown isn’t imminent.

Two significant support levels bolster this potential rebound: the 50-day exponential moving average (EMA) and the 1.0 Fibonacci retracement line. If PEPE falls below this support combination, a bearish scenario might unfold. Potential downside targets could range between $0.00000283 and $0.00000642 by the end of June or in July, depending on the point of breakdown.

Another bullish sign for PEPE is the behavior of its largest holders, who continue to accumulate and maintain their positions. The proportion of PEPE supply held by significant investors, specifically those holding 1 billion or more tokens, remains stable at around 96.02%. This stability indicates that major holders are not adjusting their positions drastically during June’s price correction.

Interestingly, smaller holders with 10 million–100 million PEPE and 1 million–10 million PEPE have been actively accumulating during price dips. This suggests increased participation and confidence among retail investors. The growing percentage of smaller and mid-sized PEPE holders highlights broader interest and strategic accumulation, enhancing market prospects for June.

The potential for a 50% rally by the end of June is also buoyed by expectations that the United States Federal Reserve might cut interest rates in September. According to UBS chief strategist Bhanu Baweja, Fed Chairman Jerome Powell might opt for earlier rate cuts due to rising unemployment, which stood at 4% in May, up from 3.9% the previous month.

Bond traders are increasingly betting on a 250-basis-point rate cut in September, with the probability climbing to 50% ahead of the Federal Open Market Committee (FOMC) meeting on June 12, from 48.6% a month earlier. These expectations are causing a significant drop in Treasury yields, evidenced by a 180 bps fall in the benchmark 10-year note within a day.

Lower bond yields reduce the opportunity costs of holding non-yielding risk assets like cryptocurrencies, which might boost traders’ interest in riskier memecoins like PEPE, Dogecoin, and Bonk (BONK) in June. This shifting market dynamic could act as a catalyst for PEPE’s potential price increase.

A mix of technical patterns, whale accumulation, smaller holder participation, and impending economic policies create a favorable setup for PEPE’s market. If these factors play out as anticipated, PEPE could be on the verge of a notable price surge by the month’s end. As always, market conditions can change rapidly, and it’s critical for investors to stay informed and cautious.