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Pepe, the second-biggest Ethereum meme coin, has stabilized this week, as sentiment in the crypto industry improved.
Pepe (PEPE) price rose to a high of $0.00001035 on Tuesday, up by 30% from its lowest level this month. Popular meme coins like Fartcoin, Shiba Inu, and Dogecoin have crawled back in the past few days.
These altcoins have bounced back even as geopolitical risks rose this week. Donald Trump announced a new set of tariffs targeting steel and aluminum imports, which will lead to higher inflation in the country. Higher inflation, on the other hand, will force the Federal Reserve to maintain high interest rates for longer.
The main catalyst for Pepe and other altcoins will be the upcoming congressional testimony by Jerome Powell, the Fed Chair. Historically, his statement on the first day of testimony tend to move cryptocurrencies and other assets.
The other top catalyst will come out on Wednesday when the US publishes the January Consumer Price Index data. Economists expect the data to reveal that the headline inflation rose to 2.9%, while the core CPI rose to 3.3%.
These inflation figures will help determine the Federal Reserve’s next actions, impacting altcoins like Pepe. The price of Pepe jumped by over 12% when the US released an encouraging core inflation report on January 15.
Pepe has a few potential catalysts that may push it higher over time. Despite its recent crash, it is still a highly popular meme coin, with its daily volume rising to almost $1 billion. This volume is higher than most other meme coins like Shiba Inu (SHIB) and Official Trump.
Pepe’s futures open interest has risen in the last four straight days, reaching a high of $278 million, its highest level in over a week. Rising open interest is a sign that the coin is seeing more demand among investors. Nansen data shows that the total Pepe coins in exchanges has dropped by 1.43% in the last 7 days to 237 trillion.
Pepe coin price analysis: can it jump to $1?
The daily chart shows that the Pepe price remains in a bear market after falling by 65% from its highest level in 2024. It dropped to a low of $0.0000086 last week. This was a notable level since it aligned with the ascending trendline that connects the lowest swings since May last year. It has always bounced back by double-digits whenever it retested that support point.
Therefore, there is a likelihood that the coin will rebound and possibly retest the 200-day moving average at $0.00001390, up by 40% from the current level. However, a move to $1 would be unlikely since it would imply a near 10 million percent surge from the current level.
This article first appeared at crypto.news
