Pepe price continued its strong surge on Friday, reaching its highest level since January, and technicals point to more gains.
Pepe (PEPE) surged to a high of $0.00001390, up by 160% from its lowest level in March, making it one of the best-performing meme coins.
The surge happened as Ethereum (ETH) short-squeezed and reached its highest level since March 3. Pepe and other Ethereum meme coins tend to perform well when Ether is in an uptrend.
It also coincided with a broad rally in crypto and stock markets ahead of a meeting between U.S. and Chinese officials in Switzerland. The hope is that the world’s two biggest economies will de-escalate tensions and possibly reduce tariffs.
Pepe’s price also climbed as smart money investors bought the dip. Nansen data shows that there are now 16 smart money investors, up from 12 earlier this month. These investors have increased their holdings to 3.20 trillion PEPE, up from 2.76 trillion earlier this week.
Pepe’s surge also happened as the daily volume in decentralized and centralized exchanges jumped to over $4.7 billion, higher than Dogecoin’s (DOGE) $3.14 billion and Shiba Inu’s (SHIB) $702 million.
Additional data shows that futures open interest rose to over $530 million, the highest level since January 17 and well above the year-to-date low of $137 million. A rising open interest is a bullish sign, indicating growing demand. Pepe’s funding rate in the futures market has remained positive in recent weeks.
Pepe price technical analysis
The daily chart shows that Pepe found a strong bottom around the $0.000060 level throughout 2024. It has failed to break below this price at least three times, forming a triple-bottom pattern with a neckline at $0.00002835, its all-time high. A triple bottom is a popular bullish reversal pattern.
Pepe has also formed a mini golden cross pattern, with the 50-day and 100-day Weighted Moving Averages crossing each other.
Therefore, the most likely price action is a short-term drop to retest support at $0.0000097, as retail investors take profits. It may then rebound and target the 50% Fibonacci Retracement level at $0.000017. A breakout above that level could open the door for more gains, potentially retesting its all-time high at $0.00002835.
