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

• Pepe has gained over 15% so far this week. The advance continues on Wednesday, with the price trading above $0.00000494.
• Reports that wallets linked to Justin Sun hold 3% of PEPE supply coincide with stronger derivatives metrics and increased social dominance, both signalling bullish sentiment.
• With bullish momentum accelerating, the technical picture points to scope for additional gains.

Pepe (PEPE) has risen over 15% so far this week. Bulls retain control on Wednesday, with the token trading above $0.00000494. Stronger derivatives metrics and increased social dominance point to bullish sentiment as reports suggest wallets linked to Justin Sun hold almost 3% of the PEPE supply. Building upward momentum also indicates room for the meme coin to advance further.

Nearly 3% of PEPE supply: Is Justin Sun the largest holder?

Nearly 3% of PEPE supply, valued at $51.25 million, sits in confirmed and predicted wallets linked to Justin Sun, according to Arkham Intelligence's Tuesday post on X. The post identified the TRON DAO founder as the largest individual PEPE holder. Most of the reported accumulation took place through large inflows over the past 10 days. This could signal a high-profile bet, potentially drawing more market attention and buying interest.

Pepe’s Social Dominance metric from Santiment echoes that interest. Tracking the proportion of cryptocurrency media discussions related to PEPE, the gauge jumped to 1.209% on Wednesday, its highest reading since mid-April. The increase signals growing market interest and sentiment among investors in the frog-themed meme coin, which could help sustain further gains.

0.013% funding rate: Derivatives strengthen the case for gains

PEPE funding rates stood at 0.013% on Wednesday, according to CoinGlass, after turning positive on Tuesday. The derivatives figures point to firmer sentiment among Pepe traders. Positive funding means long-position holders are paying short-position holders, signalling a bullish outlook.

A further bullish signal comes from CoinGlass’ PEPE long-to-short ratio, which stands at 1.06 on Wednesday. Readings above one suggest traders favour rising asset prices.

$0.00000494 exceeded: Pepe technical outlook favours bulls

Pepe’s weekly gain exceeds 15% so far, with the rally continuing above $0.00000494 on Wednesday. 

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

At 64, the Relative Strength Index (RSI) was moving higher towards the overbought threshold of 70, signalling stronger bullish momentum. Last week’s bullish crossover in the Moving Average Convergence Divergence (MACD) remained intact. Its expanding green histogram added support to the bullish case.

Alternatively, a correction in PEPE could deepen towards $0.00000412, where the 50-day Exponential Moving Average (EMA) sits.