PEPE Coin Price Eyes Bullish Momentum Amid Heavy Derivatives Play

Key Insights:

• Whale bought 1.79T PEPE coins worth $22M from Binance, shrinking supply and boosting market interest.
• PEPE open interest surged 13.34% to $536.35M, signaling rising trader activity and bullish positioning.
• May returns average 82.3% for PEPE, with a 40.4% gain month-to-date, marking it as the coin’s best-performing month.

PEPE’s price movement is showing renewed momentum after a recent breakout and growing whale activity. With increased volume and open interest in derivatives markets, the frog-themed memecoin is gaining attention.

Despite a brief pullback, several technical indicators and investor behavior suggest a potential move toward the $0.000018 mark. Whale accumulation, liquidations of short positions, and historical patterns are now pointing to a bullish outlook for PEPE.

Whale Accumulation Signals Liquidity Shift

A major whale wallet has re-emerged after nearly two years of dormancy, acquiring 1.79 trillion PEPE coins. Binance saw some tokens out of the exchange. The withdrawn PEPE coins are valued at over $22 million. Blockchain tracking service Lookonchain confirmed this wallet has not shown prior exposure to PEPE.

This sudden large purchase has reduced the available supply in the open market. Analysts suggest such activity may create a liquidity squeeze that could support upward price movement. Whale movements are often watched closely. Whales may influence short-term market behavior.

Additional whale activity has been reported in the past week. As these large holders continue to buy, the broader market sentiment appears to shift. Many traders are viewing these developments as part of a setup for a price increase. Although PEPE’s price has not fully responded, market participants are watching closely.

PEPE Coin Technical Chart Patterns Show Trend Reversal

PEPE’s price action recently formed a rounded bottom pattern, typically interpreted as a reversal indicator. The coin broke above a descending trendline, signaling the end of a downtrend. The price curve has moved upward, supported by steady buying interest.

Currently, PEPE is trading near $0.00001246. Analysts note the price may briefly dip to the $0.000011 level before testing resistance at $0.000015. If this resistance is broken, there is potential for the token to reach $0.000018 or higher.

Support is now observed in two main zones: $0.00000075 to $0.00000090, and $0.00000115 to $0.00000120. These levels are where buyers have historically entered the market. On the other hand, resistance zones include $0.00000175 to $0.00000190, $0.00000210 to $0.00000230, and $0.00000290 to $0.00000310.

PEPE Coin’s Derivatives Data Points to Increased Trader Activity

PEPE’s trading volume rose by over 10% to reach $1.41 billion. Open interest in the market increased by more than 13%, now standing at $536.35 million. These numbers suggest that more traders are entering the market and are placing long and short positions.

The long/short ratio across all platforms is 1.0462, showing a slightly bullish bias. On OKX, the ratio is much higher at 1.42, suggesting stronger bullish sentiment on that exchange. Most liquidations in the past 24 hours have been from short positions, totaling $1.42 million, while long liquidations reached $837,470.

Short liquidations often cause the market price to go up. Automatic closing of short positions can help to raise prices in the market. The high demand can cause a breakout if this trend is maintained.

Seasonal Trends and Volatility Add to the Outlook

PEPE’s highest gains on record have come in the month of May since its launch. According to Cryptorank, the token has never recorded a selloff in May since 2023. The average return in May stands at 82.3%. This year, PEPE has already gained 40.4% month-to-date.

Technical indicators also suggest strong volatility. The Bollinger Bands are more expanded now than at any time since January 31. Wide gaps between the two lines on the indicator generally suggest that prices will keep rising or falling. RSI is now at 63.23 which is below the level where the market is overbought.

In the past, PEPE has performed well during this time which can be seen from its current trading range. The boost in whale activity and derivatives could lead to a price movement up to the set $0.000018 goal.

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