The frog-themed meme coin is gaining momentum as technical indicators and on-chain data suggest the potential for a further 25% rally, provided PEPE maintains its critical support level.

Technical Indicators Flash Bullish Signals

After a turbulent first quarter, PEPE’s price trajectory is showing bullish signs. The token recently cleared a significant resistance level that had held its activity since early February. Presently, market analysts believe that if PEPE stays above $0.0000080, it could push further to $0.000010 and beyond.

Pepe Coin (PEPE) holds above the 21 EMA support following an overall bullish sentiment. Source: TradingView

One of the most powerful technical indicators in favor of this view is the Relative Strength Index (RSI) value of 59. This shows that PEPE has a high level of upward pressure with not yet being overbought, and hence still room for further appreciation. Similarly, the Moving Average Convergence Divergence (MACD) has become bullish, indicating higher buyer appetite.

On-Chain Data Supports Price Growth

Blockchain data from IntoTheBlock and Santiment highlights an increase in long-term PEPE holders. Wallets holding between 100,000 and 10,000,000 PEPE tokens have steadily increased, signaling investor confidence in the token’s future. Exchange reserves have also dropped by 0.73% over the last week, meaning traders are pulling their tokens to cold storage rather than selling.

Futures open interest has also risen considerably, to $324 million—its highest level since early February. This surge in futures positions reflects that investors are becoming more hopeful about PEPE’s short-term outlook.

Key Support and Resistance Levels to Watch

While the overall tone is bullish, PEPE will need to pass through major levels of resistance if it is to continue its upmove. The near-term level of resistance will be between $0.00000890 and $0.00000950. A close above this region could set up a move toward $0.000014, corresponding with the 0.618 Fibonacci retracement level.

Pepe Coin price could face fresh demands at the specified level as it forms a higher low, with no bearish divergence signaling an upward move. Source: SignalEdge on TradingView

On the flip side, if PEPE is unable to stay above $0.0000080, retesting lower levels at $0.00000740 or even $0.00000680 would be possible. That being said, with 10,000 addresses holding approximately 26 trillion PEPE coins at the $0.0000080 level, strong buying interest may stem a more severe correction.

Market Sentiment and Future Outlook

Social sentiment plays a crucial role in meme coin rallies, and PEPE is no exception. The overall crypto market recovery, coupled with growing interest in meme coins, has also created speculation about PEPE’s long-term future. Celebrity influencers like Elon Musk have also indirectly fueled meme coin stories in the past, boosting investor confidence further.

Pepe Coin (PEPE) was trading at around $0.000008640, up 6.73% in the last 24 hours at press time. Source: Brave New Coin

Meanwhile, PEPE’s funding rate is positive, showing traders have more risk appetite. The present long/short ratio is 1.41, in which buyers are more than sellers, facilitating further price appreciation to be possible.

Can PEPE Reach a New All-Time High?

While the short-term outlook is still bullish, the reclaiming of PEPE’s all-time high at $0.000043 is speculative. For that to be reached, the overall crypto market would need to be in a protracted bullish cycle. Should PEPE manage to break through $0.000014 in the coming weeks, it could set the stage for an even more substantial uptrend.

In conclusion, Pepe Coin is showing strong bullish momentum, backed by technical indicators, on-chain data, and growing investor sentiment. Unless PEPE maintains key support levels, a 25% rally is still a possible probability within the short term. However, investors should keep an eye on resistance levels and market sentiment to ascertain the feasibility of the rally.