Pepe coin price surged nearly 10% right after the announcement. This kind of sharp increase is typical in the crypto market where news of new listings on major exchanges can lead to speculative buying.
However, the pullback in Pepe coin price then followed. This suggests that while the initial excitement was strong, it was followed by a wave of profit-taking.
Listing perpetual futures on an off-shore platform like Coinbase International Exchange allows traders to speculate on the future price of PEPE without actually holding the coin. This can increase trading volume and liquidity, potentially stabilizing price fluctuations in the long term.
The introduction of perpetual futures often leads traders and investors to speculate about a possible spot listing. If Coinbase were to list PEPE for spot trading, it could provide further legitimacy to the coin and potentially attract more investors.
Pepe coin is the fourth largest meme coin with a market capitalization of $3 billion.
Pepe coin price hit a record high in March, before pulling back sharply amid higher crypto volatility. The price action has retraced more than 50% before bouncing off the key Fibonacci retracement level of 61.8%.
The dip lower has ended at 100-DMA, which indicates that the price action is following the technical levels. In recent days, Pepe coin price has stabilized and is trading in between the two Fibonacci levels.
Any move higher is likely to face strong resistance near $0.000006, which hosts a combination of the horizontal and diagonal trend lines. A break would indicate a clear bullish signal.
On the downside, the $0.000004 zone offers strong support in the context of the rising 100-DMA and 61.8% Fibonacci retracement.
A break below this zone would see the price action move lower toward the 200-DMA, which is currently located below the $0.000003 level.
Source: Cryptocurrency - investing.com
