Pepe Coin (PEPE) Price Breaks Key Technical Levels as Bulls Return

Pepe Coin (PEPE) recently surged by 68% in a week, reaching $0.00001453, surpassing the 200-day Exponential Moving Average (EMA) and the critical 61.80% Fibonacci level.

Key Insights:

* Pepe Coin (PEPE) has risen rapidly, adding 68% in a week to reach $0.00001453.

* The surge pushed PEPE above the 200-day Exponential Moving Average (EMA) and the critical 61.80% Fibonacci level.

* This move brought the meme coin close to breaking out of a rounding bottom formation.

* Moreover, the bullish momentum saw $1 million in short positions liquidated.

* However, failure to maintain support above the 38.20% Fibonacci level near $0.000010 could risk traders unwinding the current uptrend.

Pepe Coin Price Breaks Key Technical Levels as Bulls Return

Good morning traders, and welcome back to another session of technical analysis. Today, we’ll be taking a look at Pepe Coin (PEPE), the meme coin that has been making headlines for its recent price surge.

After hitting lows of $0.000005698 in March, Pepe coin price has now risen to hit highs of $0.00001453 this week. This upward movement saw prices push above the 200-day EMA, one of the most important indicators that can signal a reversal from a downtrend to an uptrend.

In addition, breaking above the 61.80% Fibonacci retracement level at $0.00001426, long recognized as an important level of resistance, showed strong bullish potential.

In addition, this upward momentum has been supported by the emergence of a rounding bottom, a bullish pattern that indicates a shift from a downward trend to an uptrend. The occurrence of this shape on the daily chart means that there may be a rise of 170% with the next key milestone at $0.0003864.

On the downside, failure to maintain support above the 38.20% Fibonacci level near $0.000010 could risk traders unwinding the current uptrend. If the scenario plays out, traders can seek to re-establish positions around the $0.000007669 level, creating the next key supportive zone.

PEPE Open Interest Nears $600M Amid Bullish Momentum

Now, this recent surge in Pepe coin has been accompanied by a sharp increase in derivatives trading. According to Coinglass data, the Open Interest (OI) in PEPE futures is approaching the $600 million mark.

This signifies a substantial escalation in leveraged trading activity. Such a surge in OI often indicates growing trader confidence and the potential for larger price movements.

In the last 24 hours, over $1 million was liquidated in short positions, prompting bearish traders to close their positions.

An increase in short liquidations is likely to reiterate the upward movement, as traders who are forced to cover their shorts can add extra demand for the cryptocurrency.

This development aligns with the rising positive sentiment around PEPE, which could further fuel price gains if current support levels hold.

Strong Spot Inflows Signal Sustained Buying Pressure

Moreover, the latest figures from Coinglass showed a huge inflow of PEPE exchanges, with net $18.55 million flowing into spot markets last week.

This surge in spot inflows suggests strong buying pressure, despite the short-term profit-taking observed among retail traders. Such substantial inflows often indicate that larger investors are positioning for extended upside, supporting the case for a sustained rally.

Additionally, further analysis by IntoTheBlock revealed that PEPE coins experienced high turnover levels, with an average holding period of less than one month. This dynamic indicates a community that is regularly trading the coin.

The short holding period, combined with significant spot inflows, reflects a fast-paced trading environment that could amplify price swings.

Meanwhile, recent analysis indicated that Pepe coin price 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, signaling a potential shift in market sentiment.

Additionally, whale activity surged, with a 1.5 trillion PEPE coin withdrawal reducing exchange reserves. This decline in available supply may limit immediate selling pressure, reinforcing the case for a sustained price breakout.