Pepe price jumps 10% as open interest hits $672 million

• RSI above 85 signals strong momentum despite overbought warning.
• Support holds at $0.000013; resistance lies ahead at $0.000016.
• The next target is January 18 high of $0.000021 if the rally continues.

Pepe (PEPE), the frog-themed meme coin, has surged over 10%, becoming one of the fastest-growing tokens in early May.

The breakout followed a decisive move above the 100-day Exponential Moving Average (EMA) on Thursday.

Since then, the rally has intensified, driven by new futures activity. CoinGlass data shows that open interest in PEPE futures rose from $398 million on Thursday to a record $672.65 million on Monday, signaling rising capital inflows and aggressive new buying positions.

At the time of writing on Monday, PEPE is trading at $0.00001453, up 10% on the day.

The sharp increase in open interest and price action suggests strong speculative interest, especially as the coin inches closer to its next resistance zone near $0.000016.

Market analysts will be watching closely to see if this level is breached this week, potentially opening the way for a move toward the 2024 high.

Long-to-short ratio hits 0.97, suggesting bullish bias

According to CoinGlass, the long-to-short ratio for Pepe futures currently stands at 0.97 — the highest reading in over a month.

A value above 1 generally indicates that more traders are taking long positions, expecting prices to rise.

This renewed optimism has been supported by consistent technical breakouts and heightened retail engagement, particularly among short-term momentum traders.

The increased leverage suggests that traders are anticipating a breakout toward the January 18 peak of $0.000021.

Whether the rally sustains or not will largely depend on broader market cues, risk appetite, and potential resistance near the $0.000016 level.

RSI over 85 points to overbought conditions

The Relative Strength Index (RSI) for PEPE on the daily chart has moved above 85, a classic signal of overbought territory.

While this can sometimes foreshadow a near-term correction, it can also signal strong bullish momentum in trending markets.

Traders have historically used overbought RSI levels to spot turning points or trend continuations, and Pepe appears to be approaching such a zone now.

The sharp increase in open interest and price action suggests strong speculative interest, especially as the coin inches closer to its next resistance zone near $0.000016.

Market analysts will be watching closely to see if this level is breached this week, potentially opening the way for a move toward the 2024 high.

Key resistance levels to watch this week

With PEPE’s current price momentum, traders are eyeing the $0.000016 resistance.

A confirmed breakout above this level could open the path for a move toward $0.000021 — the coin’s highest level in 2024 so far.

If this target is met, it would mark a 110% gain from last week’s breakout point.

However, if the market rejects this level, PEPE could drop back to test support at $0.000013.

The next major downside target below that sits near $0.000009, which aligns with the 100-day EMA and would represent a full retracement of the recent rally.

Regardless of the direction, PEPE’s sharp move and rising futures activity suggest that the token has become a key short-term focus in the meme coin segment.

The post Pepe price jumps 10% as open interest hits $672 million appeared first on CoinJournal.