As seen in the chart, PEPE crypto has broken above the upper boundary of a falling wedge that had formed since the mid-May correction. This wedge has contained PEPE’s lower highs and lower lows for nearly seven weeks.

The breakout, occurring at the start of July, may now open the door to a potential retest of the $0.00001600 level, which marked the mid-May peak. The analyst suggests that if price action continues to hold above the wedge and gains follow through, this target could be reached swiftly in the short term.

The short-term optimism for PEPE crypto was also aligned with another analyst’s post, where he said the current level is pivotal and breaking further would give $0.000016 and $0.000019.

Moreover, this short-term optimism in meme coin PEPE is backed by derivatives data, as open interest is $559.75 million, up 19.37% from the previous session.

Additionally, the 24-hour long/short ratio is 1.0263, and huge shorts got liquidated, amounting $3.13 million compared to $269.49 longs. The last couple of days have seen less liquidation compared to shorts, which backs the current short-term bullishness.

Long-Term Trend Reversal Still in Play

Beyond this breakout, the analyst also draws attention to the Q2 rally as a breakout from a long-term descending trendline that had been in place since late 2023. This previous breakout structure resembled a broader wedge formation suggesting the current move is part of a much larger bullish shift.

Despite heavy selling pressure in mid-May, PEPE never fell below its April lows, signaling a strong defense from bulls. If the token manages to close above $0.00001600 with strong daily candle confirmation, it would further validate the breakout and set the stage for a move toward Q4 2024’s peak of around $0.00002800.

In addition, the early July rise seems very important for the long-term uptrend, as the number of transactions transferring more than $1 million and $100K metrics were declining since mid-May alongside PEPE price, and more spikes in these metrics would boost PEPE price in the long term.$PEPE