Pepe nears crucial price as CEX outflows rise: Nansen

Pepe, the third-largest meme coin, has made a strong comeback, reaching its highest level in over a month as balances on centralized exchanges fall.

Foreign exchange outflows are increasing

Pepe (PEPE) jumped to $0.0000091, taking its market cap above $3.8 billion. This recovery coincided with a strong recovery in other meme coins such as Shiba Inu (SHIB), Dogwifhat (WIF), and Mog Coin, which rose more than 10%.

The market value of all meme coins tracked by CoinGecko rose by nearly 7% in the 24 hours to September 26, reaching $50 billion.

The surge was driven primarily by the Federal Reserve’s massive interest rate cut last week, with hints of more cuts on the way. China, the second-largest economy, also announced its biggest stimulus since 2020. Beijing is also considering a $142 billion capital injection to boost the economy, according to Bloomberg.

There are also signs that more investors are returning to Pepe. Pepe exited on September 26 at a valuation of $4.2 million, a six-fold increase from the average, according to Nansen. Total supply on exchanges has fallen by 0.35% in the past seven days.

The significant outflow from centralized exchanges is a sign that more investors are moving coins from exchanges to their own custody centers.

Pepe’s surge also coincided with futures open interest reaching $129 million, the highest level since Aug. 2, according to CoinGlass.

Pepe price is approaching a major resistance Pepe price chart | Source: TradingView

On the daily chart, Pepe rebounded after retesting the ascending support that consolidated the lowest swing low since April. It climbed above the 50-day moving average and retested the 50% Fibonacci Retracement point at $0.0000090.

Pepe also moved towards the major support/resistance level of the Murrey Math Lines at $0.0000090 and the Ichimoku cloud indicator.

The next level to watch is $0.00000987, the August 4 swing high and the top of Murrey’s trading range. A break above this level could push it to the next target of $0.0000108, the March high.