The frog-themed meme coin Pepe (PEPE) is stirring up the crypto market again, and this time, the bullish sentiment seems stronger than ever. After bouncing off a crucial support zone this week, PEPE has risen over 5%, and on-chain signals, technical indicators, and rising investor interest suggest that this may be just the beginning of a larger rally.
Let’s break down why PEPE is heating up and what’s fueling the bullish momentum — and more importantly, where it could be heading next.
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A Strong Rebound from Key Support
On Tuesday, PEPE found solid footing around the $0.0000125 level — a crucial zone that has acted as strong support in recent weeks. By Wednesday, the meme coin jumped over 5% to trade around $0.0000139, signaling a potential change in market structure.
This recovery isn’t just a random bounce. It reflects a renewed confidence among traders who are beginning to see signs of a sustained uptrend forming, especially on higher timeframes like the daily and weekly charts.
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Open Interest Spikes — Smart Money Is Entering
One of the biggest signs of bullish momentum is the rising Open Interest (OI) in PEPE futures. According to Coinglass, OI surged from $530 million on Tuesday to nearly $600 million on Wednesday — a jump of over $70 million in just 24 hours.
This increase in OI means new money is entering the market, indicating that traders are opening fresh long positions. When OI grows alongside price, it usually points toward a healthy, bullish trend rather than just a short-lived pump.
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Positive Funding Rates: Bulls Are in Control
Another key metric supporting the bullish case is the positive funding rate, which climbed to 0.0013% on Wednesday. This means that long-position traders are paying shorts, a clear sign that the market is leaning heavily bullish.
Historically, PEPE has performed well during periods of positive funding. For example, on May 8, the meme coin saw a significant price increase under similar conditions. The current scenario could lead to a similar breakout if momentum continues building.
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Technical Analysis: Double-Digit Gains Possible
Daily Timeframe:
PEPE has retested and held above the $0.0000130 support zone, bouncing over 5% by mid-week. This area has become a solid floor, and the strong reaction from this level indicates heavy buying interest.
Weekly Timeframe:
The weekly chart shows PEPE holding above the $0.0000125 level. As long as this support holds, the next major target lies at $0.0000168 — the 50% Fibonacci retracement level drawn from the December high of $0.0000283 to the March low of $0.0000052. That’s nearly a 30% potential upside from current prices.
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Momentum Indicators: RSI & MACD Confirm Bullishness
RSI (Relative Strength Index) on the weekly chart is currently at 57, comfortably above the neutral 50 level. This suggests that bullish momentum is gaining strength and still has room to grow before becoming overbought.
MACD (Moving Average Convergence Divergence) has shown a bullish crossover in early May. The histogram bars are increasing and staying above the zero line, confirming that momentum is in favor of the bulls.
These technical signals point to a healthy trend reversal — not just a temporary price jump.
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Whale Activity and Community Buzz
On-chain data shows that whale wallets have started accumulating PEPE again. Large-volume transfers to private wallets and exchanges suggest that influential players are positioning for a bigger move.
Meanwhile, PEPE continues to trend on social platforms like Twitter and Reddit, gaining attention not only as a meme but as a potential short-term trading opportunity.
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PEPE Price Prediction: Can It Hit $0.00002 Again?
If the bullish momentum continues and PEPE clears the $0.0000168 level in the coming weeks, it could target $0.000020, a psychological level that would represent a 45% gain from current prices.
In a more extended rally, a return to the December high of $0.0000283 isn’t out of the question — especially if Bitcoin and the broader crypto market also remain bullish.
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Final Thoughts: Is This the Start of the Next PEPE Rally?
PEPE is showing clear signs of strength:
Strong support holds on daily and weekly charts
Open Interest is surging
Funding rates are positive
Momentum indicators support more upside
Whale accumulation and retail hype are back
While no rally is guaranteed, all signs point to increasing bullish momentum. For meme coin enthusiasts and short-term traders, PEPE may be worth watching closely in the coming days. A break above $0.0000145–$0.0000150 could unlock the next major leg up.