The memecoin sector gained momentum recently, with the total market cap jumping 13% to $25 billion. PEPE mirrored this surge by rallying over 12%, second only to Shiba Inu's impressive 30% daily gain. Alongside the price uptrend, PEPE's daily trading volume surged 182%, hitting $305 million, signaling heightened market interest.
Key Resistance Test for PEPE
PEPE is now challenging a key horizontal resistance located between $0.00000290 and $0.00000300. This zone corresponds to the neckline of an inverted head-and-shoulders pattern, an indicator of potential bullish momentum. However, sellers remain active around this level, preventing a clear breakout. Supporting the bullish outlook, the SuperTrend indicator has turned positive, and Open Interest on Binance climbed to $44.25 million despite a recent slight pullback.
Crucially, for bulls to maintain control, PEPE needs to break above this neckline and hold that position. Should it fail, the recent gains could simply be a retracement within a broader bearish context. The upside target following a successful breakout stands at $0.00000350, while failure to surpass resistance keeps the focus on a downside level near $0.00000250.
What’s Fueling PEPE's Bounce?
Beyond technical signals, PEPE's on-chain activity shows signs of strength. Daily transaction values grew by 11.34%, reaching nearly $40 million, although the number of holders only inched up by 0.50%. Institutional interest is visible as well: cold wallets linked to major exchanges like Upbit, OKX, and Bithumb increased their PEPE holdings by over 2%, suggesting accumulation rather than distribution.
Short position liquidations amplified the recent price spike, with over $2.8 million in short orders wiped out between $0.00000280 and $0.00000304. The largest single liquidation was $276,000 at $0.00000297, adding to the buying pressure.
The memecoin sector’s rebound mirrors broader trends, but PEPE’s ability to sustain its rally hinges on flipping the neckline resistance into support.
