Will Pepe Coin Price See 22% Surge As Bullish Momentum Builds?

Pepe coin price has gained a lot of traction to become one of the most active meme coins, raising the attention of traders after a big rally.

The token surged over 30% on May 8 as it broke major technical levels on the way to a level hinting at yet higher animosity in the broader trade of meme coins. With traders speculating more gains, PEPE’s price is nearing vital resistance levels, which set its next major course.

Pepe Coin Rallies Over 30% as it Breaks Key Levels

On May 8, Pepe coin increased by more than 30% back to the $0.000010 mark and above its 200-day Exponential Moving Average (EMA).

This rally started with a long-legged doji candle on May 6 that finished a morning star pattern that is frequently associated with bullish reversals.

The high active price traded throughout the day led to a strong-bodied green candle, confirming bullishness in the trade.

Trading at $0.00001308, a break above the 200-day EMA will signal a possible change in the long-term trend. The bullish outlook is further confirmed by the positive crossover of the MACD and signal lines.

However, a possible retest of the 23.60% Fibonacci retracement level at $0.00001025 may present a short-term risk that could kick-start a 6% retrace in the event of a breakdown in this support.

More so, PEPE coin has broken the 23.60% Fibonacci retracement level at $0.00001025 and is heading for the 38.20% level at $0.000013344.

This is indicative of a possible 22% upside from present prices and is consistent with sentiment in the markets and technical momentum.

Nevertheless, if the price fails to sustain its current momentum, a revisit of the 23.60% level could trigger a more intensive correction down to $0.000008832, an 18% downside risk.

Pepe Open Interest Nears $555 Million

With PEPE coin price surging, its open interest also soared considerably, indicating an increase in leveraged positions. According to Coinglass data, PEPE open interest recently reached $531 million, and it is near its all-time peak of $555 million.

This spike suggested that traders are aggressively setting up for more upside momentum after the retail cheer and speculative momentum.

Additionally, the weighted funding rate for PEPE has also soared to 0.0118 %, signifying a rise in bullish trade volume. With more than $5.71 million of short liquidation, the current market situation is tilted to long positions, confirming the bullish sentiment regarding the PEPE in the near term.

PEPE Overtakes DOGE in 24-Hour Volume

Recently, PEPE outpaced Dogecoin (DOGE) 24-hour trading volume and became the leading meme coin and the sixth most traded cryptocurrency in general (not including stablecoins).

According to market data shared by ChanderCharts, PEPE coin 24-hour volume reached approximately $2.33 billion, reflecting a 32.9% price surge.

Consequently, this impressive volume performance has pushed PEPE into a prominent position among leading cryptocurrencies, highlighting its rapid rise and growing influence in the market.

With traders increasingly turning to PEPE for speculative opportunities, the token’s momentum appears set to continue, potentially reaching its next critical resistance level.

Further supporting a bullish outlook, recent analysis indicated that PEPE coin broke out of a falling wedge pattern, a classic bullish reversal setup. This move was confirmed by a close above the wedge’s upper resistance line.

Additionally, whale activity surged, with a 1.5 trillion PEPE coin withdrawal reducing exchange reserves, potentially limiting immediate selling pressure and reinforcing the case for a sustained price breakout.

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