PEPE surges on bullish bets, but can it sustain momentum?

The cryptocurrency market is currently in the green, and as usual, meme coins are one of the best performers in the market.

Dogecoin, the leading memecoin by market cap, is up 4% in the last 24 hours and maintains its position as the 9th-largest crypto on CoinMarketCap.

PEPE, the native token of the Pepe ecosystem, is one of the best performers among the top 50 cryptocurrencies by market cap.

The token is currently trading above $0.000003600 at press time on Wednesday, extending its rally from Tuesday.

Derivatives data show renewed interest in the frog-themed meme coin amid bullish speculations. PEPE is poised for further gains if it sustains above its 50-day Exponential Moving Average (EMA).

Retail demand pushes PEPE’s price higher

Similar to other cryptocurrencies, PEPE is rallying on the back of the ceasefire deal between the United States and Iran.

Retail demand for PEPE has resumed as easing geopolitical tensions in the Middle East are renewing broader market risk-on sentiment.

Data obtained from CoinGlass shows that the PEPE futures Open Interest (OI) is at $211.25 million on Wednesday, up over 16% in the last 24 hours.

The increase in OI suggests heightened leverage exposure or positional buildup, boosting the notional value of outstanding contracts.

Furthermore, the OI-weighted funding rate has flipped positive to 0.0154%, indicating that the bulls are now in control of the market.

The 24-hour total liquidations in PEPE futures reached $1.61 million, led by $ 1.39 million in short liquidations, reaffirming the bullish bias among traders.

PEPE could rally higher in the near to medium term if the broader market embarks on a sustained recovery.

Meme coins usually rise amid investor speculation and greed, and the current market conditions could push PEPE’s price higher.

PEPE price forecast: Will Pepe rally again?

The PEPE/USD 4-hour chart is bearish and inefficient as PEPE is currently trading above its 50-day EMA at $0.00000364.

Despite its recent rally, the 4-hour timeframe remains bearish as PEPE remains below the descending 100- and 200-day EMAs, reflecting a short-term recovery in the broader downward trend.

The momentum indicators suggest that the bulls are currently in control of the market.

The Moving Average Convergence Divergence (MACD) line hovers above the zero line, reinforcing the presence of a growing bullish momentum.

The Relative Strength Index (RSI) reads 68, above the neutral line and approaching the overbought condition, suggesting a strong buying pressure in the market.

If the daily candle closes above the 50-day EMA, it would confirm a breakout rally, which was previously capped twice in the last two months.

The daily candle close would pave the way toward the 100-day EMA at $0.00000419 and carve out a more convincing bullish profile.

However, if the market undergoes a correction, PEPE would likely retest the 50-day EMA at $0.00000364 and the February 6 low at $0.00000311 in the near term.