Pepe Price Prediction: PEPE Eyes 75% Rally as Volumes Shot Up by 5X

Pepe (PEPE) has gone up by 17% in the past 24 hours alone as the crypto market seems to be coming back to life after spending a few weeks in consolidation mode.

The $0.0000030 area seems to have been the line in the sand for bulls, as the price started its ascent shortly after hitting this key threshold for a second time.

As a result of today’s jump, Pepe has managed to trim its year-to-date losses to just 2.5%. Meanwhile, trading volumes have shot up by 400% in the past 24 hours, accounting for 66% of the asset’s circulating market cap.

This is clear evidence of a short squeeze in the making that could set the stage for a strong rally if PEPE manages to clear its trend line resistance.

Short Liquidations Spike as Cryptos Reclaim Key Levels

Data from CoinGlass shows that over $360 million worth of short positions have evaporated in the past 24 hours. In total, more than $600 million in bearish positions have been taken out of circulation in the past 4 days or so, as the market seems to be getting ready to flush bears out of their caves.

Although other meme coins are rallying as well, Pepe has distanced itself from larger tokens like Dogecoin (DOGE) and Shiba Inu (SHIB), as these are booking milder gains of 6.5% and 5.5%, respectively, during the same period.

Data from CoinMarketCap shows that trading volumes for meme coins as a whole have doubled in the past day, indicating strong buying interest across the entire category.

Open interest in (OI) in Pepe is still heavily depressed, down 57% from its local peak on January 4, back when PEPE bounced back to $0.0000070. This means low participation from traders – something the market desperately needs to sustain a stronger rally.

PEPE Could Deliver 75% Gain as Positive Momentum Accelerates

Heading to the daily chart, we can see that today’s rally is already facing some selling pressure at $0.0000040 – a level that coincides with a trend line resistance.

The combination of this line with Pepe’s recent horizontal support has formed a descending triangle, a price pattern that could precede a strong breakout. Right now, we need a move above $0.00000425 to ignite a stronger rally.

If that happens, we could see PEPE rising to $0.0000049 next and then to $0.0000070 for a 75% gain if positive momentum accelerates.

The Relative Strength Index (RSI) is already nearing the 60 level. Paired with the oscillator’s breakout above the 14-day moving average, these are clear indications that bullish momentum is building up.

Two Consecutive Buy Signals Spotted Today for PEPE

We have multiple potential areas of resistance ahead, but today’s volumes provide strong evidence that a massive short squeeze could unfold if bulls manage to push the price past those barriers.

Looking at the hourly chart, the price action is clearly consolidating at $0.0000040. We got a buy signal on late Sunday as PEPE started moving, and we got a second a few hours before the beginning of the American session.

There seems to be some profit-taking going on, but the rally seems to be backed by strong institutional and whale participation, as signaled by these above-average volumes. Hence, the road seems paved for a move toward $0.0000050 at least, meaning a 25% gain in the near term.