Key Takeaways:
- PEPE has broken out of a 7-week falling wedge, potentially targeting $0.00001600 in the short term.
- Derivatives data is bullish, with rising open interest and significant short liquidations.
- Whale transactions and broader trendline breakouts support a long-term bullish scenario.
After weeks of sideways movement and downward pressure, meme coin PEPE is finally showing signs of renewed bullish momentum. A popular crypto analyst recently shared a technical chart indicating that PEPE has broken out of a falling wedge pattern, a classic bullish signal, potentially setting the stage for a short-term rally.
PEPE Breaks Above Falling Wedge Resistance
PEPE’s price action since mid-May has been confined within a falling wedge, characterized by lower highs and lower lows. This technical pattern had persisted for nearly seven weeks, capping upward momentum until early July.
$PEPE bullish wedge playing out pic.twitter.com/UupIdWlIZd
— Greeny (@greenytrades) July 3, 2025
Now, the price has pierced above the upper resistance of the wedge, sparking optimism among traders. The breakout raises the probability of a retest of the $0.00001600 zone, which served as a significant resistance point during the May highs. If bullish momentum continues, analysts suggest a swift move toward $0.000019 could follow.
Strong Derivatives Data Supports Short-Term Bullish Sentiment
The rally is not just technical. Derivatives market data from Coinglass shows rising confidence among traders. Open interest for PEPE futures climbed to $559.75 million, up 19.37% in just one day. The long/short ratio stands at 1.0263, favoring long positions.
Moreover, a significant $3.13 million in short positions were liquidated recently, compared to just $269K in longs—another sign that bearish traders were caught off guard by the sudden breakout. The relatively low long liquidation suggests there is more room for bulls to run.
$PEPE, if it can reclaim n hold this red line, YO tap can be achieved as last tp! pic.twitter.com/bp9MQjC0bw
— VΣGΣƬΛ (@VegetaCrypto1) July 3, 2025
Larger Trend Reversal Still Possible for PEPE
Zooming out, analysts also point to a more significant development: the Q2 2025 breakout from a long-term descending trendline that has held since late 2023. This suggests that the current move may not be an isolated spike but part of a broader bullish trend.
Also Read: PEPE Price Jumps 9.9% as Whales Accumulate — Key Support Level Could Trigger Breakout
Importantly, despite intense selling in May, PEPE never breached its April support levels. This resilience highlights strong buyer interest at lower levels. A sustained close above $0.00001600 on the daily chart could confirm this larger uptrend and open the door to Q4 2024 highs near $0.00002800.
Supporting the bullish narrative is an uptick in on-chain whale activity. Data from Santiment shows a rebound in large transactions exceeding $100K and $1 million, which had declined since mid-May. A continued rise in whale interest typically precedes strong price movements in meme coins like PEPE.
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.
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