Pepe Price Forecast: Justin Sun-linked wallets fuel bullish sentiment as PEPE rises

• With gains of over 15% so far this week, Pepe trades above $0.00000494 on Wednesday as its advance continues.
• Stronger derivatives indicators and greater social dominance point to bullish sentiment, alongside reports of wallets linked to Justin Sun holding 3% of PEPE supply.
• As bullish momentum strengthens, the technical picture points to scope for additional gains.

A gain of over 15% so far this week leaves Pepe (PEPE) trading above $0.00000494 on Wednesday, with buyers retaining control. Reports that wallets linked to Justin Sun hold almost 3% of the PEPE supply come alongside stronger derivatives indicators and increased social dominance, both pointing to bullish sentiment. Gathering upward momentum also suggests the meme coin could advance further.

Reports point to Justin Sun as the largest individual PEPE holder

Nearly 3% of PEPE supply, worth $51.25 million, is held across confirmed and predicted wallets associated with Justin Sun, according to an X post published by Arkham Intelligence on Tuesday. The post identified the TRON DAO founder as the largest individual PEPE holder. Large inflows reportedly accounted for most of this accumulation over the past 10 days, potentially representing a high-profile bet that could draw greater market attention and buying interest.

A similar picture emerges from Santiment’s Social Dominance metric for Pepe, which tracks the proportion of cryptocurrency media discussions relating to PEPE. On Wednesday, the measure jumped to 1.209%, its highest reading since mid-April. The increase points to growing market interest and sentiment among investors in the frog-themed meme coin, potentially providing support for further price gains.

Stronger derivatives indicators underpin further upside

A shift into positive territory for PEPE funding rates on Tuesday points to improving sentiment among Pepe traders in the derivatives market. CoinGlass data puts the rate at 0.013% on Wednesday. With long positions paying short positions, the reading reflects a bullish outlook.

Wednesday’s CoinGlass long-to-short ratio for PEPE also stands at 1.06. Readings above one signal bullish sentiment, indicating that traders are positioning for asset prices to increase.

Pepe technical outlook: Buyers take charge as momentum strengthens

Up over 15% so far this week, Pepe continues to advance and trades above $0.00000494 on Wednesday. 

A continuation of Pepe’s upward move could bring the next daily resistance level at $0.00000521 into view.

At 64, the Relative Strength Index (RSI) is heading towards the overbought threshold of 70, signalling that bullish momentum is strengthening. Last week’s bullish crossover in the Moving Average Convergence Divergence (MACD) remains in place. Its expanding green histogram lends further support to the bullish case.

Conversely, a correction in PEPE could deepen towards the 50-day Exponential Moving Average (EMA), which stands at $0.00000412.