Pepe (PEPE) is flashing bullish technical signals after forming a PEPE golden cross on the 4-hour timeframe. With price action climbing to $0.0000073 and open interest surging past $293 million, market sentiment is heating up again. However, as traders pile into long positions, concerns about potential profit-taking are beginning to surface. Could the rally falter just shy of the anticipated $0.0000078 mark?
A Month of Recovery and Momentum Building
From a low of $0.0000052 earlier this month, PEPE has steadily rebounded to a local high of $0.0000075, notching a 3.94% gain over the past week. Earlier, the token was trading above its 200-day Simple Moving Average (SMA), a key trend indicator. More notably, the 9-day Moving Average (MA) has crossed above the 21-day MA at $0.0000072 and $0.0000069, respectively.
Golden crosses are often seen as bullish signals, indicating the potential for extended upward movement. While the current PEPE golden cross has only appeared on the 4-hour chart so far, traders are watching closely for confirmation of the pattern on the daily timeframe.
What Technical Indicators Are Telling Us
Beyond moving averages, other metrics show a strengthening bullish case. According to on-chain data reviewed by sources, PEPE is experiencing sustained net outflows from exchanges, with negative spot netflow registered for two consecutive days. This suggests that holders are moving tokens to self-custody, reducing selling pressure and signaling accumulation.
In the futures market, Open Interest (OI) in PEPE contracts jumped by 8.22% to $293.43 million, reflecting an increase in capital entering the market. OI growth often precedes major price movements, particularly when paired with a directional bias.
Data from Coinglass shows that 53% of all PEPE futures positions are longs. A rising Long/Short Ratio implies growing confidence among traders that prices will continue to climb.
Meanwhile, the MACD indicator, another widely watched momentum tool, recently completed a bullish crossover, further reinforcing the view that the asset is in an uptrend.
Market Dynamics: Risk of a Profit-Taking Pullback?
Despite this optimism, some caution is warranted. Meme coin rallies often come with high volatility, and the risk of a short-term pullback remains present. If traders begin to take profits at current levels, a temporary drop toward the $0.0000069 support could materialize.
According to crypto analysts, the key to sustaining PEPE’s uptrend lies in the broader market mood. If Bitcoin remains above $82,000, altcoins like PEPE will continue to thrive. But one dip in BTC dominance and you’ll see meme coins suffer the fastest reversals.
The daily Relative Strength Index (RSI) is also approaching overbought levels, hovering near 68 at the time of writing. While not yet flashing a reversal, it does suggest that the current uptrend could be nearing a critical inflection point.
Broader Context: Memecoins Gain Momentum Again
PEPE’s rally comes amid a broader resurgence in meme coins. Dogecoin (DOGE) and Shiba Inu (SHIB) have also shown renewed strength following macro signals such as U.S. President Donald Trump’s tariff delay, which has helped buoy risk-on assets.
Still, PEPE’s recent move appears driven less by news cycles and more by technical breakout patterns and capital rotation. The low liquidity hours during which the recent surge occurred suggest whales may be maneuvering the token for upside exposure ahead of an anticipated altcoin season.
Conclusion
If the PEPE golden cross formation continues to hold and demand remains high, PEPE could very well reclaim the $0.0000078 mark. This level represents a key psychological barrier and potential breakout zone. Breaching it convincingly could open the doors to new all-time highs, especially if daily technical indicators begin to mirror the bullish signals seen on shorter timeframes.
However, should a wave of profit-taking ensue or Bitcoin falter, a reversal back to $0.0000069 or lower remains plausible.
As always with meme coins, velocity matters more than fundamentals. PEPE’s price action will likely remain sensitive to liquidity flows, derivatives activity, and crowd psychology over the coming days.
FAQs
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What is a golden cross in crypto trading?
A golden cross occurs when a short-term moving average crosses above a long-term moving average, signaling bullish momentum.
Why is PEPE’s price rising?
PEPE’s price has surged due to increased investor demand, strong technical indicators, and rising Open Interest in futures markets.
What does negative netflow mean for a token like PEPE?
Negative netflow suggests that more tokens are being withdrawn from exchanges than deposited, indicating holding behavior and reduced selling pressure.
Is PEPE a safe investment now?
While PEPE is showing bullish indicators, meme coins remain highly speculative and subject to rapid market shifts. Risk management is essential.
Could PEPE reach a new all-time high soon?
If bullish trends continue and key resistance at $0.0000078 is broken, a new all-time high becomes more likely but is not guaranteed.
Glossary
Golden Cross – A bullish chart pattern where a short-term moving average crosses above a long-term moving average.
Open Interest (OI) – The total number of outstanding futures contracts, indicating market activity and sentiment.
MACD – Moving Average Convergence Divergence, a momentum indicator used to determine trend direction.
Spot Netflow – The difference between exchange inflows and outflows of a token, used to assess investor sentiment.
Long/Short Ratio – The ratio of long positions to short positions in the futures market.
Sources
Disclaimer
Investing in cryptocurrency-related products is high-risk due to the volatile nature of digital assets. You could lose the entire amount you invest. Do your research, consult a financial advisor and never invest without understanding the risks. This article is for informational purposes only and should not be taken as financial advice.
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