Pepe nears crucial price as CEX outflows rise: Nansen

Pepe, the third-largest meme coin, staged a strong comeback, soaring to its highest point in over a month as balances in centralized exchanges fell.

Exchange outflows are rising

Pepe (PEPE) jumped to a high of $0.0000091, pushing its market cap to over $3.8 billion. This recovery coincided with the strong rebound of other meme coins like Shiba Inu (SHIB), Dogwifhat (WIF), and Mog Coin, which rose by over 10%.

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

The main reason for this rally was last week’s Federal Reserve’s jumbo interest rate cut, along with hints that more cuts were on the way. Additionally, China, the second-largest economy, unveiled its biggest stimulus since 2020. According to Bloomberg, Beijing is also weighing a $142 billion capital injection to boost the economy.

PEPE breaking out + china about to flood the market with liquidity

Perfect storm for chinese pepe to shine $PEIPEI full send it pic.twitter.com/EKnMKdcknf

— CRG (@MacroCRG) September 26, 2024

There are also signs that more investors are moving back to Pepe. According to Nansen, Pepe had outflows worth $4.2 million on Sept. 26, a 6x increase above average. The total supply on exchanges has dropped by 0.35% in the last seven days.

A significant outflow from centralized exchanges is a sign that more investors are moving the coin from exchanges to their own custody.

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

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Pepe price is nearing key resistance

Pepe price chart | Source: TradingView

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

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

The next level to watch will be $0.00000987, its highest swing on Aug. 4 and the top of Murrey’s trading range. A break above that level could push it to the next target of $0.0000108, its March high.

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