The memecoin PEPE rallied over 10% as broader crypto sentiment improved. The surge broke a three-week consolidation pattern and was accompanied by a significant increase in trading volume and over $1.3 million in short liquidations. While derivatives data showed heightened speculative interest and a tilt toward long positions, significant selling pressure emerged as investors took profits, raising questions about the sustainability of the upward momentum.
The frog-themed memecoin PEPE experienced a notable price rally amid an improving cryptocurrency market mood. The asset broke out of a three-week consolidation range, successfully defending a key support level before climbing higher.
At the time of reporting, PEPE traded at $0.00000369, marking a 24-hour gain of 10.3%. Trading volume surged 72% to $518 million, reflecting significantly stronger market participation. This upward move triggered substantial liquidations in the derivatives market.
Over $1.3 million in short positions were liquidated during the price increase. This forced covering activity contributed to further speculative demand for the token.
Data from CoinGlass showed derivatives volume represented 70.4% of the total $842 million in activity. Open interest simultaneously rose 16.8% to $214.6 million, indicating increased futures market engagement.
The futures netflow metric turned positive, climbing 356% to $4.98 million. Furthermore, the Long/Short Ratio rose to 1.03, showing a slight majority of long positions.
However, on-chain and exchange data revealed profit-taking by investors. Sell volume on April 8th exceeded buy volume, producing a negative buy/sell delta of 260 billion tokens.
Exchange netflow data corroborated the selling trend, with a spot netflow of $3.8 million representing a 223% jump. This indicated more tokens were flowing onto exchanges than off them, often a precursor to selling.
The price momentum was reflected in technical indicators like the Relative Strength Index (RSI), which rose from 44 to 57. This suggested increased buying pressure and positioned the token for potential further gains if support holds.
The bullish case hinges on PEPE maintaining a price above $0.0000036, with $0.0000041 as a next target. Continued aggressive selling could reverse the rally, potentially pushing the price back below $0.0000034.
