Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, has recently made waves in the memecoin market. Hayes has publicly endorsed some tokens including Pepe (PEPE), Mog Coin (MOG), and Mother Iggy (MOTHER) believing in their breakout potential.
This support was bolstered by a large buy of PEPE tokens on Binance. Blockchain analytics showed that he bought 24.39 billion PEPE tokens worth around $250,000. Some of the memecoins Hayes has held are now in the spotlight. This is mainly because Hayes has previously endorsed other similar tokens.
Hayes, who has greatly impacted the crypto industry, has in the past urged investors to pay attention to memecoins. He has stated that these tokens can onboard new users, and create much attention, particularly for blockchains that are embracing the memecoin trend such as Ethereum and Solana.
Price Surge Amid Increased Trading Volume
Since Hayes’ acquisition of PEPE, the token has surged in value in the market. On September 27, PEPE spiked by 16% to a price of $0.00001077. This was the highest level of the token since the early August.
PEPE’s rally also played a part in the increasing market capitalization. It rose to $57.8 billion with a 22.5% increase.
Source: Coinglass
The rally was not only fueled by Hayes’ public statement but also by increased trading activities on the spot and derivatives markets. PEPE’s spot trading volume was over $2.4 billion. The derivatives markets were even busier with a 53% surge in trading volume in the past 24 hours.
Concurrently, the Open Interest (OI) of the PEPE derivatives also saw a 20% increase. This is a positive sign that reflects speculation and traders’ interest. The following were some of the factors that led to the token surge by 35% in the previous week.
Memecoin Popularity Gains Momentum
Hayes’ endorsement has been made at a time when memecoins have started to make a comeback in the cryptocurrency market. Previously disregarded tokens such as PEPE and MOG, which are usually deemed to have no real-world use, are getting backing from popular faces in the crypto industry.
Hayes has previously noted that memecoins can be useful in the sector, as they can attract attention and create a community. In his recent posts, Hayes jokingly confirmed his devotion to PEPE stating,
This statement came with a huge investment, which supported his stance on the future prospects of these tokens.
Mog Coin, another token of Hayes’ preference, also has the same total supply as PEPE, which is 420.69 trillion tokens. New listings on Bybit and KuCoin exchanges have helped the cat-themed MOG token to strengthen its position in the market.
PEPE Price Outlook: Key Resistance and Support Levels
PEPE’s recent price surge has led to heightened interest from traders and investors. The token’s current resistance level is set at $0.000014. It is the next major target if the bullish rally is to continue.
As PEPE climbs back up, the token has put 79% of its investors in the green zone, while only 13% remain in the red zone.
However, as the token has continued to record significant price appreciation, technical analysis points out that the RSI is overbought at the current level of 87. This means that as it stands, buyers are in control of the market. However, a temporary reversal is possible due to traders taking profits.
Supporting the bullish stance, the Moving Average Convergence Divergence (MACD) is still in the positive region. If PEPE price fails to maintain this support level, a potential decline to $0.00000668 or $0.00000596 could be on the horizon.
