Pepe Coin price continued its recovery on Sunday, reaching its highest point since October 28. It has jumped 85% from its December low, pushing its market capitalization to over $2.9 billion.
Pepe Coin Price Jumps as Open Interest and Volume Jump
The Pepe token jumped as investors piled into meme coins like Bonk, Floki, Pippin, Pudgy Penguins, and Shiba Inu. All these tokens increased by more than 10% over the last 24 hours, while their market capitalization rose to $52 billion.
Their rally is happening amid soaring demand for these meme coins, with 24-hour volume surpassing $7.7 billion. Pepe Coin’s volume rose to over $1.39 billion in the last 24 hours.
Meanwhile, futures open interest jumped to over $470 million, its highest level since October 11. Its interest has jumped from a low of $169 million on December 9. Soaring open interest is a sign of increased leverage, which is bullish.
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Pepe Coin price is also rising as shorts are being liquidated. Data shows that shorts worth over $10.4 million were liquidated on January 2nd, the biggest increase in over a year. Short liquidations rose to over $5 million in the last two days.
Meanwhile, there are signs that whale investors are boosting their Pepe holdings. One of these whales is James Wynn, a popular investor who lost over $1 billion last year.
Pepe Coin price is also jumping as investors embrace a risk-on sentiment. Data compiled by CoinMarketCap shows that the Fear and Greed Index has exited the fear zone and moved to the neutral point at 40. This means that it may move to the greed zone in the near term.
Pepe Price Technical Analysis
The three-day chart shows that the Pepe Coin price has rebounded after bottoming at $0.00000377 in December. It has moved above the key resistance level at $0.000005648, its lowest swing in April and August 2024 and March last year.
However, there is still a risk that the ongoing rebound is a dead-cat bounce. For one, as the chart above shows, the token’s Supertrend indicator is still red. Also, the token remains below the 50-day and 100-day Exponential Moving Averages (EMA).
The token has also formed a giant head-and-shoulders pattern, a common bearish sign. Its head section is at $0.00002832, while the shoulders are at $0.00001665.
Therefore, there is a risk that the token will resume the downtrend. If this happens, the next key support level to watch is $0.0000037. A drop below that price will confirm the bearish outlook and point to more downside. In the meantime, if the gains continue, the PEPE token will rebound to the psychological $0.000010 level.
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