PEPE (PEPE) Rallies 35%, Breaking the $0.000010 Psychological Level

The meme coin with a dash of crypto humor

The meme coin, PEPE (PEPE), clocked a 35% rally on May 8, pushing past the psychological barrier of $0.000010 for the first time since February 4. This surge was triggered by a morning star candlestick pattern, a classic reversal formation spotted between May 6-8.

The brief burst took PEPE to $0.00001270 before a 1.84% intraday dip as traders engaged in profit-taking maneuvers.

From a technical perspective, PEPE managed to slice through the 200-day EMA. Additionally, the MACD indicator transitioned into positive territory. The next target in sight is the 2.618 Fib extension at $0.00001337. A breach of this level could pave the way for an even more substantial rally.

However, traders are advised to proceed cautiously as the RSI is currently measuring overbought levels.

Immediately below, support is anticipated at the 1.618 Fib extension of $0.00001116, which is closely located to the recent breakout zone.

Should this support yield, we might witness a deeper correction with a key risk area emerging at $0.00001071.

Key Levels to Watch:

* Immediate Resistance: $0.00001337 (2.618 Fib)

* Immediate Support: $0.00001116 (1.618 Fib)

* Risk Zone: Below $0.00001071

Trade Setup:

* Buy Above: $0.00001116

* Take Profit: $0.00001337

* Stop Loss: $0.00001071

Derivatives Market Signals Strong Bullish Sentiment

The derivatives market signals strong bullish sentiment. Open interest (OI) in PEPE futures is $531 million, which is slightly below the all-time high of $555 million.

The long/short ratio on Binance is 1.86, which means 65% of traders are long on PEPE.

Additional Derivative Indicators:

* OI-Weighted Funding Rate: 0.0118% (Long dominant)

* Short Liquidations: 5.71M