Here’s why Pepe coin price went parabolic

Pepe coin price is closing 2024 on a high note, rising by almost 20%, erasing some of the losses experienced this month.

The third-largest meme coin, Pepe (PEPE), climbed to $0.000022, its highest level since December 18. This recovery came after Elon Musk, the richest person in the world, updated his X profile picture to Pepe. like image.

One of the most influential people globally, Musk has more than 234 million followers on X, close ties to Donald Trump, and a fortune of almost half a trillion dollars.

This action may indicate increased interest in Pepe, similar to his previous relationship with Dogecoin (DOGE). Musk’s tweets about Dogecoin in 2020 preceded the public rally in 2021 and helped DOGE become the biggest meme coin with a market cap of over $47 billion.

Pepe has seen significant growth since its inception in 2023, with its market cap rising from near zero to over $10 billion at the beginning of this month. The token has surged nearly 1,500% in the past year, making it among the best-performing meme coins.

Pepe created significant wealth for many investors. According to IntoTheBlock, 70% of all owners, or about 178,000 people, made a profit, while 24% made a loss. The remaining investors are at break-even point.

Pepe breakeven price | Source: IntoTheBlock Pepe Coin price analysis Pepe price chart | Source: crypto.news

The daily chart shows that Pepe coin price rose as high as $0.00002833 at the beginning of this month before pulling back. It dropped as low as $0.0000145, which coincided with the 50% Fibonacci Retracement point, and formed a hammer pattern. Characterized by a small body and a long lower shadow, this formation is generally a bullish signal.

Pepe is now back above the key resistance level at $0.00001950, marked by the December 24 high. It is also trading above the 200-day and 100-day moving averages.

Given these bullish indicators, Pepe is likely to continue rising; Bulls are targeting the year-to-date high of $0.00002833, which represents an upside of around 33% from the current level. Potential catalysts for further gains include Donald Trump’s upcoming inauguration and expected FTX distributions. Some of the $16 billion from distributions could be reinvested in cryptocurrencies, potentially giving Pepe a boost.