- PEPE memecoin has staged a strong bullish reversal, breaking out of a falling wedge pattern and flipping key resistance into support, with technical indicators and whale activity signaling potential for further gains.
- On-chain data reveals a 2 trillion PEPE token transfer and a spike in large transactions, supporting the view that the recent price surge is driven by high-conviction accumulation and short squeeze dynamics.
The PEPE memecoin is once again in the cross-hairs of investors and market analysts alike. Notably, the memecoin that is currently trading around the $0.00001412, reflecting a 3.8% gain in the last 24 hours has showcased a strong bullish reversal. Additionally, the token has also experienced massive on chain whale activity.
It goes without saying that this rise follows a successful breakout above a descending trendline, with bulls now eyeing a key resistance at $0.00001576.
Bullish Breakout Fuels Momentum
On the 4-hour chart, PEPE recently broke out of a falling wedge pattern that had suppressed price movement for nearly a week. The breakout above $0.00001384 flipped resistance into support, marking the beginning of a new uptrend. Bollinger Bands have expanded, volatility is returning, and the price is holding above critical EMA clusters ($0.00001332–$0.00001388), confirming a bullish setup.
The next major test lies at $0.00001576 — a confluence of prior breakdown zones and horizontal resistance. A daily close above this level, accompanied by strong volume, could set the stage for a run toward $0.00001750–$0.00001800.
Whale Moves 2 Trillion PEPE Tokens
Adding fuel to the rally, on-chain data shows a whopping 2 trillion PEPE tokens, worth over $27.8 million, were transferred from crypto exchange Bybit to an unknown wallet. While such large movements often raise selloff concerns, the context here suggests accumulation. The move aligns with the recent bullish breakout and appears more like strategic positioning rather than distribution.
On-Chain and Derivatives Data Favor Bulls
Supporting this bullish outlook, PEPE has seen a surge in both retail and whale interest. Active addresses rose by 8.05% this past week, while mid-to-large size transactions skyrocketed. Transfers in the $1M–$10M range jumped 2300%, indicating high-conviction buying.
Meanwhile, short positions are being squeezed aggressively. On May 27 alone, $1.02 million in short liquidations were recorded compared to just $350k in long liquidations. This short squeeze dynamic, despite a 9.76% drop in open interest, points to leveraged traders exiting bearish bets as price climbs.
Technicals Point to Further Gains
Technically, PEPE is consolidating above the 0.382 Fibonacci retracement at $0.00001352, maintaining bullish structure. The Directional Movement Index (DMI) shows an ADX reading above 45, with a bullish +DI crossover. The 30-minute Ichimoku cloud also confirms upward bias with price above the Kumo and a Tenkan-Kijun cross.
As long as PEPE holds above $0.00001332 support, the bias remains upward. A breakout above $0.00001576 could trigger the next leg higher, potentially hitting fresh highs in the $0.00001750–$0.00001800 zone. Traders should monitor volume and candlestick structure closely in the coming sessions to confirm momentum.