PEPE Gains 12% in Two Days Is The Memecoin Making a Come Back?

Pepe pulled back almost 4% from its Wednesday high and may be gearing up for further declines. A closer look at the 1-day chart shows that it faced notable rejection at a key resistance level.

However, the pullback tells only part of the story. Despite the recent correction, the asset has been in an uptrend over the last two days.

On Sunday, PEPE surged to a high of $0.00000445, almost 4% above its opening price. However, it retraced and ended the day with no notable gains. The uptrend resumed the following day, and the altcoin closed with gains exceeding 6%.

The rally continued into Wednesday, with the memecoin gaining almost 10% at its peak. Its latest correction was unsurprising given its volatility over the last two days.

What’s Fueling the Run

The key question is what is driving these price movements.

Is Justin Sun the Top PEPE Holder?

Between his official and predicted wallets, Justin Sun holds almost 3% of the PEPE supply, worth $51.25M.

These PEPE tokens moved into his wallets in the past 10 days – making him the top individual holding PEPE. https://t.co/rrZdRaD6W5

— Arkham (@arkham) October 27, 2026

One possible catalyst is a recent announcement by Arkham. The platform raised the possibility that Justin Sun, Tron’s founder, may be the largest individual holder of the altcoin. It reached this conclusion after examining several wallets associated with Sun and finding that one, in particular, received 3% of PEPE’s supply, worth $51.25 million.

The potential significance of this development lies in the possibility that a prominent figure like Sun has recently acquired or received a substantial amount of PEPE while attention surrounding the memecoin remains relatively low. This could fuel speculation that something big is about to happen or suggest that it may be worth holding for the long term.

The timing of the news has also drawn attention. Arkham’s report emerged on Tuesday, and on Wednesday, Canary Capital updated its filing for a PEPE ETF with the US Securities and Exchange Commission (SEC). This follows an earlier filing for the same product in April. The SEC has yet to deliver a ruling, but the prospect of an exchange-traded fund tied to the memecoin could generate further interest.

Despite these developments, PEPE has yet to overcome a key technical barrier. The recent rally has been followed by a pullback, raising questions about whether the positive news will be enough to sustain the uptrend.

What Will Pepe Do Next?

The odds appear to be against PEPE at the time of writing. On the 1-day chart, the asset recently faced rejection near the $0.0000050 resistance level. This would mark its third failed attempt to break above the level since September 23.

This resistance is worth watching because the last time the altcoin recorded a daily candle above $0.0000050 was in January 2026. The repeated rejections suggest significant selling pressure around this level, meaning the bulls may need stronger buying momentum to break through decisively.

Even more concerning, the last time PEPE briefly broke above this level, it subsequently dropped to $0.0000042. If history is any guide, a similar move could occur again.

The 4-hour chart also shows several attempts to break through the resistance over the last 24 hours. Meanwhile, the Relative Strength Index (RSI) suggests that a further correction is possible, as the asset entered overbought territory a few hours ago.

The risk of further declines remains notable because the recent rally appears to have been driven partly by positive news. If enthusiasm surrounding these developments fades, selling pressure could intensify. However, a dovish interest rate decision from the Federal Reserve could improve sentiment and help PEPE break above resistance.

In a nutshell, previous price movements suggest that PEPE could retrace further in the coming days, particularly if it fails to overcome the $0.0000050 barrier. A decline toward $0.0000042 remains a possibility. Conversely, a dovish FOMC decision could give the bulls another opportunity to challenge resistance and extend the rally.

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