PEPE rallied as broader crypto sentiment improved following eased geopolitical tensions. The memecoin broke out of a three-week consolidation range.
PEPE defended the $0.0000033 support, climbed to $0.0000037, then slightly retraced.
At press time, Pepe [PEPE] traded at $0.00000369, up 10.3% in 24 hours. Trading volume surged 72% to $518 million, reflecting stronger participation.
Over $1.3 million in short positions were liquidated during the move. This forced traders to cover positions, driving speculative demand.
Are traders jumping into PEPE now?
That move aligned with rising derivatives activity across PEPE markets.
Data from CoinGlass at press time showed Derivatives Volume reached 70.4% of $842 million. At the same time, Open Interest [OI] rose 16.8% to $214.6 million.
A simultaneous rise in OI and volume indicated increased futures participation.
Futures Netflow also turned positive. On the 8th of April, inflows reached $129.3 million against $124.36 million in outflows.
As a result, Futures Netflow climbed 356% to $4.98 million, signaling aggressive positioning.
On top of that, the Long/Short Ratio rose to 1.03. This showed a slight tilt toward long positions.
Are investors starting to sell?
As expected, as PEPE jumped to a three-week high, investors who had been underwater rushed to cash out.
On the 8th of April, Sell Volume hit 3.29 trillion against 3.06 trillion in Buy Volume. This pushed the Buy/Sell Delta to -260 billion, confirming stronger selling pressure.
Furthermore, exchange activity also echoed this selling trend. CoinGlass data showed heightened selling activity, with Netflow exceeding $7 million on the 7th of April.
At press time, Spot Netflow was $3.8 million, marking a 223% jump. In fact, PEPE saw $51.6 million in exchange inflows compared to $47.8 million in outflows.
Traditionally, increased selling pressure has accelerated the downside momentum, leading to lower prices.
Is the momentum sustainable?
At press time, PEPE showed stronger upside momentum, breaking out of a recent consolidation as traders covered their shorts. At the same time, others flipped bullish and deployed significant capital into long positions, creating strong speculative demand.
These two conditions strengthened the upside momentum, with the Relative Strength Index [RSI] rising to 57, a significant jump from 44.
The rising RSI indicated increased demand, with buyers stepping in, positioning PEPE for further gains.
If the momentum holds, PEPE could flip $0.000004 and eye $0.0000041. This bullish outlook holds as long as the memecoin closes above $0.0000036.
However, sellers are strongly aggressive, and continued profit realization could erase all gains. If profit takers dominate, PEPE could drop below $0.0000034 again.
Final Summary
- PEPE broke out of a three-week range after holding strong support at $0.0000033.
- A break above $0.000004 could extend gains, but sustained selling may push price back below $0.0000034.
