• The price of Pepe increased by 65% over the previous three days, reaching an ATH of $0.0000147 on May 23.
• Before the following move, investors have two accumulation levels at $0.0000118 and $0.0000102.
• On-chain analytics indicate a surge in investor interest without any discernible indications of a sell-off.

The price of Pepe (PEPE) appears to be continuing its upward path, although it may follow a correction. Buyers who are sidelined may take advantage of this brief retreat to stockpile PEPE for the upcoming leg higher.

Why Pepe is bullish?

Between March 14 and May 19, the pipe price consolidated for 66 days, increasing orders. The frog-themed meme coin began its 65% rise on May 20 when it broke above the $0.0000058 to $0.0000108 range. It then reached a new all-time high (ATH) of $0.0000147, where it is presently trading.

The recent surge in the price of Pepe can be ascribed to the optimism around the acceptance of Ethereum spot exchange-traded funds (ETFs). Given that PEPE is an ERC-20 meme coin, the ETH-based announcement was essential in driving the meme currency’s value higher.

PEPE buying opportunity

Pepe’s price surged 65% after breaking above the $0.0000108 mark, and this impetuous buying is probably over, at least for the near future. Investors can anticipate that one of two things will happen in the future.

Mean reversion: Pepe’s price drops to $0.0000118, the halfway point of the 65% increase, following a 16% correction. The initial level of accumulation is this one.

Extended profit-taking: PEPE is expected to break above $0.0000108, the upper bound of the previously indicated range, and retest the imbalance, which extends from $0.0000108 to $0.00000959, should the selling pressure become too great. This change represents another accumulation level and would represent a drop of around 25% from the current level.

Investors may decide to hold bids close to both levels to profit from the uptrend’s subsequent leg.

Why is this ETH-based meme likely to rally more?

Sentiment claims that between May 21 and 22, the number of wallets engaging with the Pepe blockchain, or 24-hour Active Addresses, increased from 3,600 to 12,000 in a sudden manner. This abrupt increase is comparable to the mid-May PEPE spike of 36% in active addresses.

This indicator demonstrates that investors are considering Pepe at the present price point.

Moreover, the 30-day Market Value to Realized Value (MVRV) indicates 39%, indicating that investors who bought PEPE in the previous month made an average profit of 39%. A greater MVRV value is interpreted as a possible sell signal since it indicates that investors are waiting on unrealized earnings. Furthermore, historical data must be used to produce reliable results.

While there have been other 39% price reversals for Pepe over the past year, the February surge lifted the local peak of PEPE from approximately 40% to 119%. Because investors are less likely to sell during bull runs and are far more confident, the MVRV increases before the market turns south.

Investors can be confident that the Pepe price won’t likely form a local top at this point, keeping that in mind.

The price of Pepe appears stable following its 65% wild swing, but if the Ethereum spot ETF is rejected or delayed, the upward trend may be reversed. The first indication of a bearish outlook would be a violation of the $0.0000108 level.

Pepe price would make a lower low and refute the bullish argument if it produced a clear daily candlestick closing below $0.00000887. In the event of such a situation, PEPE might fall to $0.00000835, a crucial support level.