The once-sleepy Pepe the Frog meme coin pond has been stirred, with PEPE experiencing a surprise rally of nearly 23% today, July 16th. This surge coincides with a massive buy-in by a prominent Venture Capital firm, Nascent, fueling optimism for the future of this meme-inspired cryptocurrency.
Nascent Bets Big on Pepe: 141 Billion Coins Strong
On-chain data from Lookonchain reveals a strategic shift by Nascent, swapping its holdings of Maker (MKR) for a hefty 141.23 billion PEPE tokens, alongside Lido DAO (LDO). This move represents a significant investment, with the PEPE accumulation alone valued at roughly $1.57 million.
This substantial purchase by Nascent underscores the VC’s belief in Pepe’s potential for further growth. Notably, PEPE previously reached an all-time high of $0.00001718 during the 2021 crypto bull run. Despite recent market corrections, the meme coin has shown resilience, and today’s price action suggests a potential return to form.
Price Action and Market Sentiment
At the time of writing, PEPE is trading at $0.00001161, marking a 23.42% increase. This uptick coincides with a surge in buying pressure, potentially fueled by Nascent’s acquisition. Additionally, data from Coinglass suggests a positive shift in the derivatives market for PEPE.
The coin’s Futures Open Interest (OI) jumped 23.19% to $144.78 million, with a corresponding 178.66% increase in derivatives volume, reaching $3.24 billion. This data indicates heightened investor interest, further bolstering the optimistic outlook.
Looking Ahead Will the Frogs Keep Hopping?
While the recent price action and VC interest paint a promising picture for PEPE, the inherent volatility of the cryptocurrency market necessitates caution. Crypto enthusiasts are keeping a close eye on the token’s movements, anticipating potential future swings.
One factor to consider is the Relative Strength Index (RSI), currently hovering around 58. This suggests a market hovering between neutrality and slight bullishness, leaving room for further buying activity that could propel PEPE even higher.
The Pepe coin rally serves as a reminder of the unpredictable nature of meme coins. While the recent developments are positive, investors should exercise caution and conduct thorough research before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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