Pepe Price Forecast: PEPE climbs as Justin Sun-linked wallets spark bullish sentiment

• Pepe extends gains, trading above $0.00000494 on Wednesday, up over 15% so far this week.
• Improving derivatives metrics and rising social dominance signal bullish sentiment amid reports that Justin Sun-linked wallets hold 3% of PEPE supply.
• The technical outlook suggests further upside potential as bullish momentum gathers pace.

Pepe (PEPE) surges over 15% so far this week, trading above $0.00000494 on Wednesday as bulls remain in control. Improving derivatives metrics and rising social dominance signal bullish sentiment, amid reports that Justin Sun-linked wallets hold almost 3% of the PEPE supply. In addition, strengthening bullish momentum suggests further upside for the meme coin.

Is Justin Sun the top PEPE holder?

Arkham Intelligence's X post on Tuesday highlighted that Justin Sun, founder of TRON DAO, is the top individual PEPE holder with nearly 3% of the supply worth $51.25 million across confirmed and predicted wallets. The accumulation reportedly occurred mainly over the past 10 days through large inflows, potentially signaling a high-profile bet that could attract further market attention and buying interest.

Santiment’s Social Dominance metric for Pepe reflects this. The index measures the share of PEPE-related discussions across the cryptocurrency media. The metric surged on Wednesday to 1.209%, the highest level since mid-April. This rise indicates growing market interest and sentiment among the frog-themed meme coin investors, potentially supporting further gains.

Improving derivatives support further gains

Derivatives data shows improving sentiment among Pepe traders. CoinGlass’ funding rates for PEPE flipped positive on Tuesday, reading 0.013% on Wednesday. This indicates longs are paying shorts, reflecting a bullish outlook.

In addition, CoinGlass’ long-to-short ratio for PEPE reads 1.06 on Wednesday. A ratio above one indicates bullish sentiment, as traders bet that asset prices will rise.

Pepe technical outlook: Bulls gain control of the momentum

Pepe price extending gains, trading above $0.00000494 on Wednesday, up over 15% so far this week. 

If Pepe continues its upside, it could extend the gains toward the next daily resistance at $0.00000521.

The Relative Strength Index (RSI) read 64, pointing upward toward the overbought level of 70 and indicating bullish momentum gaining traction. The Moving Average Convergence Divergence (MACD) showed a bullish crossover last week that remains intact, with a rising green histogram further supporting the bullish thesis.

On the other hand, if PEPE corrects, it could extend the pullback toward the 50-day Exponential Moving Average (EMA) at $0.00000412.