Pepe (PEPE), the third-largest meme coin, staged a strong comeback, soaring to its highest point in over a month as balances in centralized exchanges fell.

Exchange outflows are rising Pepe (PEPE) jumped to a high of $0.0000091, pushing its market cap to over $3.8 billion.

World’s third-largest meme coin Pepe continued its strong rebound, hitting its highest level in over a month as balances on centralized exchanges fell.

Exchange outflows rising

PEPE/USD rose to a high of $0.0000091, pushing its market cap to over $3.8 billion. The recovery also saw other meme coins, such as SHIB, WIF, and MOG, rally by over 10%.

The total market cap of all meme coins, as tracked by CoinGecko, increased by almost 7% in the 24 hours to 26 September, to reach $50 billion.

The rally in meme coins comes after the Federal Reserve raised interest rates by less than expected last week, and hinted that more cuts could be on the way.

At the same time, China, the world’s second-largest economy, unveiled its biggest stimulus since 2020. Beijing is also considering a $142 billion capital injection to boost the economy, according to Bloomberg.

PEPE breaking out + china about to flood the market with liquidity

Perfect storm for chinese pepe to shine $PEIPEI full send it pic.twitter.com/EKnMKdcknf

There were also signs that more investors are moving back to Pepe. According to Nansen, Pepe saw outflows of $4.2 million on 26 September, which were 6x higher than average. The total supply on exchanges dropped by 0.35% in the past seven days.

A large outflow from centralized exchanges usually indicates that more investors are moving the coin from exchanges and into their own custody.

The jump in Pepe also coincided with a surge in futures open interest, which reached $129 million, marking its highest level since 2 August, according to CoinGlass.

PEPE price at key resistance levels

On the daily chart, PEPE bounced back after retesting the ascending support that connects the lowest swing since April. It moved above the 50-day moving average and retested the 50% Fibonacci Retracement point at $0.0000090.

Pepe also moved to the major support/resistance level of the Murrey Math Lines at $0.0000090 and the Ichimoku cloud indicator.

The next level to watch will be $0.00000987, which marks PEPE’s highest swing on 4 August and the top of Murrey’s trading range. A break above that level could see it move to the next target at $0.0000108, which was its March high.