The memecoin sector rebounded sharply in the past 24 hours, with market cap rising 13% to $25 billion. Reflecting this surge, Pepe [PEPE] gained over 12% at press time, trailing only Shiba Inu [SHIB], which recorded over 30% in daily returns.
Notably, the daily volume of PEPE aligned with the price surge as it exploded by 182%, reaching $305 million. The question now is whether PEPE will be able to overcome its resistance and lead the broader memecoin sector’s r
esurgence.
PEPE price attempts a resistance breakout
PEPE tested horizontal resistance at the $0.00000290-$0.00000300 zone, which formed at the neckline of an inverted heads-and-shoulders pattern.
The pattern hinted that bulls were gaining momentum, though bears challenged them at the neckline. Reinforcing the bullish strength, the SuperTrend indicator also flipped bullish.
Additionally, the Open Interest (OI) has been rising, though it pulled back over the past five days. On Binance, OI stood at $44.25 million.
Therefore, for bulls to take control, PEPE must breach the neckline and stay above it. Otherwise, the rally may be considered a pullback within a larger bearish market.
Moreover, the bullish target past the neckline is at $0.00000350. If the breakout attempt fails, the bearish target remains at $0.00000250.
What’s behind PEPE’s uptick?
Aside from the strength in PEPE’s technical outlook, its chain activity was also thriving. The daily transaction amount increased by 11.34%, reaching $39.86 million, while holders rose by a mere 0.50%.
Moreover, institutions were accumulating PEPE. For instance, cold wallets of exchanges like Upbit, OKX, and Bithumb increased by over 2% collectively. Transfers to cold wallets hint at buying, while those to hot wallets signal potential distribution.
Moreover, over $2.80 million in short orders had been liquidated, amplifying the daily gains. This represented orders between $0.00000280 and $0.00000304, with the largest order liquidated worth $276K at $0.00000297.
Final Summary
- PEPE surged 12% in the past 24 hours as transactions and short liquidations spike as the price rises.
- The memecoin market was rebounding strongly, but PEPE needs to turn the neckline into support to align with the broader sector rebound.