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Pepe (PEPE) coin surged nearly 35% on May 8, fueled by Bitcoin’s remarkable breakout above the $100k mark. As the meme coin reclaims the psychological $0.000010 level, market watchers are speculating about the start of a new meme coin season. With PEPE open interest nearing an all-time high, Binance traders are overwhelmingly bullish. But can the meme coin sustain its upward momentum and target a 22% upside from current levels?
PEPE Eyes $0.000013344 After Morning Star Reversal
The coin price rally began on May 6 with the formation of a long-legged doji candle, completing a morning star pattern. This technical reversal pattern set the stage for a nearly 35% price surge by May 8, printing a robust bullish candle.
Currently, PEPE trades at $0.00001091, levels last seen on February 4. However, the meme coin is taking a breather with a 1.84% intraday pullback. Crossing above the 200-day Exponential Moving Average (EMA) has attracted momentum traders, with the MACD indicator showcasing a bullish crossover.
According to Fibonacci retracement levels,the coin has surpassed the 23.60% level at $0.00001025 and now targets the 38.20% level at $0.000013344 — a 22% potential upside from its current price. However, if PEPE fails to hold the 23.60% support, a 6% dip to $0.00001025 could occur, followed by a potential 18% slide to $0.000008832.
Binance Traders Remain Bullish as Open Interest Soars
Pepe’s rally is also reflected in its derivatives market. Open interest (OI) for the coin has surged to $531 million, closing in on its all-time high of $555 million. Meanwhile, the OI weighted funding rate has spiked to 0.0118%, underscoring the bullish sentiment.
On Binance, 65% of traders are currently holding long the coin positions, pushing the long/short ratio to 1.86. The liquidations of $5.71 million in short positions further emphasize the bullish stance. If long positions continue to dominate, PEPE could find the momentum to test the next resistance at $0.000013344, maintaining its bullish narrative in the meme coin sector.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: PEPE Coin (PEPE) Sets Sights on $0.00001465 as Whale Holdings Surge by 24 Trillion
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
