- PEPE has successfully broken out of a bullish continuation pattern, suggesting a potential upside.
- The meme coin’s price is correlated with Ethereum, and increased Ethereum burns could benefit it.
- It has outperformed its rivals, Dogecoin and Shiba Inu, in terms of long-term holder returns.
PEPE, a frog-themed meme coin has been making waves in the cryptocurrency market, exhibiting strong bullish momentum. Following Ethereum’s lead, the token successfully broke out of a bullish continuation pattern, complete with a retest for confirmation. This positive development has reignited investor interest in the token.
One of the key factors driving PEPE’s price surge is its correlation with Ethereum. As Ethereum continues to burn more tokens, it could indirectly benefit the meme coin. The increased scarcity of Ethereum could lead to a higher valuation for the popular token, which is often seen as a speculative asset tied to Ethereum’s success.
The high correlation between the two crypto assets is evidenced by data from IntoTheBlock. It showed PEPE’s 60-day correlation with ETH was 0.92, higher than with Bitcoin, which stood at 0.84, and a surge from June’s 0.91. The correlation coefficients lie between -1 to +1. If the reading is close to -1, prices hardly move in the same direction signifying an inverse relationship. On the other hand, if the reading is near +1, prices typically head in the same direction or a direct relationship. ETH and PEPE exhibit a strong positive correlation.
PEPE’s Retail Traders In Accumulation Spree
Furthermore, the meme coin has demonstrated a remarkable performance compared to its larger rivals, Dogecoin [DOGE] and Shiba Inu [SHIB]. According to Santiment data, PEPE’s long-term holders have experienced significant returns amidst recent price gains. However, it’s worth noting that retail traders have been more active in buying PEPE than whales, suggesting a potentially speculative nature to the current price increase.
Overall, the meme coin’s bullish outlook is encouraging, but investors should remain cautious and conduct thorough research before making any investment decisions. The cryptocurrency market is highly volatile, and past performance is not indicative of future results.
