PEPE, the frog-themed meme coin, is experiencing a major price surge

The meme coin, PEPE, is experiencing a major price surge as bullish momentum continues to build in the market. The cryptocurrency has seen impressive gains, rallying nearly 70% last week.

This upward trend comes as PEPE’s Open Interest reached a new all-time high of $595.36 million on Monday, according to CoinGlass. This metric indicates fresh buying activity among traders entering the market.

The digital asset is currently trading around $0.000014, putting it back at price levels not seen since January 31, approximately 100 days ago.

The recent price movement has triggered significant market reactions. Over $1.14 million worth of short positions were liquidated in just four hours as bears were caught off guard by the sudden upward movement.

Adding to the bullish sentiment, the PEPE long-to-short ratio has reached 1.09, the highest level in over a month. This ratio above one reflects growing optimism as more traders bet on the coin’s continued rise.

PEPE Breaks Key Technical Levels

PEPE has broken through several key technical levels. The coin successfully broke and closed above its 100-day Exponential Moving Average (EMA) at $0.000009 last Thursday before rallying over 64% until Saturday.

The price action has formed what analysts describe as a rounding bottom pattern with a neckline at the 61.80% Fibonacci level ($0.0001426). A daily close above this level could confirm a breakout pattern.

Technical indicators also favor continued upward movement. The daily chart’s Relative Strength Index (RSI) has moved above 70, signaling strong bullish momentum, though this also places the asset in overbought territory.

PEPE has also surpassed the 200-day EMA, which is influencing an uptick in the 50 and 100 daily EMAs, hinting at a positive crossover. The rising MACD and signal lines with a surge of green histograms reflect increased trend momentum.

Despite some selling pressure, bulls have shown remarkable strength. According to available data, there was a net flow of $10.52 million into exchanges on May 12, followed by an $18.55 million inflow last week.

The fact that the price continues to rise despite this supply spike demonstrates that buyers are successfully absorbing the selling pressure.

Data from IntoTheBlock shows that the average holding time of transacted coins remains under one month for the last couple of weeks. This suggests short-term traders are booking profits while long-term holders remain on the sidelines.

If PEPE continues its upward trajectory, analysts suggest it could extend the rally to retest its next daily resistance at $0.000016. A successful close above this level would open the path toward its January 18 high of $0.000021.

Based on the potential Fibonacci level breakout, some analyses target the 100% level at $0.00002649, representing a 75% rise from current levels. More optimistic projections based on the rounding bottom pattern suggest a 170% upside potential, targeting $0.00003864.

However, caution is warranted as a failure to maintain momentum could see prices retest support at $0.000013. If prices break under the 38.20% Fibonacci level near $0.000010, it could invalidate the current bullish pattern.

As of Monday afternoon, PEPE trades at $0.000014, continuing its upward trend as derivatives data aligns with rising market optimism.