The recent movement of PEPE coin has triggered widespread speculation about funding sources while simultaneously catalyzing fresh demand for the popular meme cryptocurrency. As prices climb upward, daily trading activity has followed suit with remarkable momentum. Trading volume has jumped 18% over the past 24 hours, reaching $1.05 billion at press time, according to data from Santiment.
Market analysts note that simultaneous increases in an asset's price and trading volume typically indicate robust market demand. This pattern often suggests heightened buying activity, which in PEPE's case may be driven largely by retail investors experiencing FOMO (fear of missing out). The combination presents a strong signal of bullish momentum within the meme coin market.
The futures market provides additional evidence of PEPE's strengthening position. Open interest has reached $120 million, representing a substantial 21% increase within just 24 hours. Data from Coinglass confirms this rapid expansion in futures contracts.
"When open interest climbs during a price rally, it's a clear indication of increased market participation and capital inflow," explained one cryptocurrency analyst who requested anonymity. Such movements typically suggest growing confidence among traders and investors in an asset's short-term prospects.
Technical indicators further support the bullish outlook. The Elder-Ray Index has returned a positive value for PEPE for the first time since January 19, confirming a significant shift in investor sentiment toward the altcoin. This indicator specifically measures the relative strength between bulls and bears by analyzing the relationship between an asset's price and its moving average.
A positive Elder-Ray reading signifies bull control of the market. This suggests upward momentum and potential price appreciation in the coming trading sessions if current conditions hold.
TradingView charts indicate that sustained buying pressure could potentially drive PEPE's price toward a target of $0.0000083. This represents a significant upside from current levels and would mark a notable recovery for the meme coin.
Cryptocurrency markets remain highly volatile, however, and analysts caution that weakening buying activity could quickly reverse the trend. Should purchasing momentum fade, PEPE risks breaking below support at $0.0000062, potentially falling further to $0.0000048. This represents a substantial downside risk that traders should consider.
Market observers remain divided on whether the current rally represents sustainable growth or merely a temporary surge in speculative interest. The meme coin sector has historically demonstrated extreme price volatility, with rapid price movements occurring in both directions.
If macro factors remain favorable and market sentiment continues its bullish trajectory, many analysts believe there is strong likelihood of a sustained PEPE rally. However, the cryptocurrency's future price action will ultimately depend on broader market conditions and ongoing trader interest in the speculative asset class.