Pepe Price Forecast: PEPE gains as wallets linked to Justin Sun fuel bullish sentiment

• Pepe maintains its upward momentum above $0.00000494 on Wednesday, taking its gains so far this week to over 15%.
• Bullish sentiment is evident in stronger derivatives indicators and greater social dominance, alongside reports of Justin Sun-linked wallets holding 3% of PEPE supply.
• With bullish momentum strengthening, the technical picture points to scope for additional gains.

Bulls retain control of Pepe (PEPE), which trades above $0.00000494 on Wednesday after gaining over 15% so far this week. Stronger derivatives indicators and greater social dominance reflect an upbeat mood, while reports suggest wallets linked to Justin Sun hold almost 3% of the PEPE supply. The meme coin also shows scope for further gains as bullish momentum strengthens.

Does Justin Sun hold the largest individual PEPE stake?

A post on X by Arkham Intelligence on Tuesday identified TRON DAO founder Justin Sun as the largest individual PEPE holder. Across confirmed and predicted wallets, his holdings account for nearly 3% of the supply, worth $51.25 million. Large inflows reportedly drove most of this accumulation over the past 10 days. This could signal a high-profile bet, potentially drawing greater market attention and buying interest.

A similar picture emerges from Santiment’s Social Dominance metric for Pepe, which tracks the proportion of discussions across cryptocurrency media that relate to PEPE. On Wednesday, the reading jumped to 1.209%, its highest since mid-April. The increase points to greater market interest and stronger sentiment among investors in the frog-themed meme coin, which could help sustain further gains.

Can stronger derivatives indicators sustain further gains?

Sentiment among Pepe traders is strengthening, according to derivatives data. After turning positive on Tuesday, CoinGlass’ PEPE funding rates stood at 0.013% on Wednesday. Long position holders are therefore paying short position holders, signalling a bullish outlook.

Further evidence comes from CoinGlass’ PEPE long-to-short ratio, which stands at 1.06 on Wednesday. Readings above one point to bullish sentiment, with traders positioning for asset prices to climb.

Pepe technical outlook: Can bulls maintain control of momentum?

With gains exceeding 15% so far this week, Pepe continues to advance and trades above $0.00000494 on Wednesday. 

A continuation of Pepe’s advance could bring the next daily resistance at $0.00000521 into focus.

At 64, the Relative Strength Index (RSI) is heading upwards towards the overbought threshold of 70, signalling strengthening bullish momentum. Meanwhile, last week’s bullish crossover in the Moving Average Convergence Divergence (MACD) remains intact. Its rising green histogram adds further support to the bullish case.

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