Required containers
- Pepe extends gains on Wednesday, extending its rally from the 50-day EMA.
- Derivatives reflect the range of trading activity where the risk sentiment is returned to the market.
Pepe (PEPE) is experiencing a sustained rally on Wednesday, trading in the green for the third day in a row. The frog-themed meme coin is increasing in popularity as the market grows, raising the demand for meme coins.
Market sentiment increases the value of the meme coin
The broader market, despite the political tensions surrounding the US-Iran blockade on the Strait of Hormuz and the peace talks, is boosting trading interest in the meme currency.
According to CoinMarketCap, the Fear and Greed Index is at 62 on Wednesday, indicating a continued rise in risk appetite since the announcement of the US-Iran ceasefire.
On the side of derivatives, the PEPE futures Open Interest (OI) it represents $213.25 million, an increase of 7% in the last 24 hours.
This increase in futures positions reflects the participation of traders, concurrence and recovery in the current price – further strengthening PEPE’s optimism.
Pepe tries to blow up the opposition level
The 4-hour PEPE/USD chart is stable and active as Pepe is recovering in the short-term, with a three-day retracement from the 50-day Exponential Moving Average (EMA) at $0.00000368.
However, PEPE is still trading below the 100-day and 200-day EMAs, which could result in a rally.
The Relative Strength Index (RSI) at 60 is rising above the center line, indicating a positive bearish trend. Meanwhile, the Moving Average Convergence Divergence (MACD) is still above its line, keeping the histogram bars positive.
At press time, PEPE is trading at $0.00000393. If the rally continues, PEPE is expected to break above the trend near $0.00000400, close to the 100-day EMA at $0.00000404.
A break above this level would make a way to the 200-day EMA around $0.00000500 to counter the sentiment.
Below that, the 50-day EMA at $0.00000368 provides strong recent support, with additional protection at the February 6 low of $0.00000311.
