Pepe Coin rallies 63% as bull pennant targets $0.0000057

Pepe Coin's 63% weekly rally has formed a bull pennant pattern that could extend gains to $0.0000057.

Pepe Coin rose 63% in seven days to $0.00000406 as of Aug. 25, forming a bull pennant on the four-hour chart that targets $0.0000057.

CoinMarketCap data shows PEPE is the third-most visited meme coin in the crypto market, with Dogecoin and Shiba Inu ranking fourth and fifth. CoinGlass data shows open interest fell to $298 million from $350 million on Aug. 22.

PEPE's 63% gain since Aug. 19 outpaces Dogecoin's 31% and Shiba Inu's 27% over the same period. Pudgy Penguins was the only top-five meme coin to outperform PEPE, rising 68% on increased futures volumes. The total meme coin market cap rose 31% to $28 billion from $22 billion, per CoinMarketCap.

A decisive close above $0.0000040 could trigger a move to the 161.8% Fibonacci level at $0.0000057. Failure to clear resistance risks a drop to $0.0000038 support, which would invalidate the bull pennant.

Futures Data Shows Cooling Leverage

Pepe's open interest dropped from $350 million on Aug. 22 to $298 million on Aug. 25, per CoinGlass. Futures trading volumes fell from $811 million to $745 million during the same period. The long/short ratio of 0.91 shows more short positions than long positions, suggesting most futures traders expect a pullback after the 63% run.

The RSI reading of 59 favors bulls, but the Chaikin Money Flow at -0.09 indicates rising selling pressure as some traders take profits after the move from $0.0000025 to $0.00000406. If the CMF continues to deteriorate, it could signal that distribution is underway, increasing the likelihood of a retest of the $0.0000038 support level.

Meme Coin Sector Momentum

The broader meme coin market has shifted from bearish to bullish, with the total sector market cap rising 31% to $28 billion from $22 billion since Aug. 19. PEPE's gains come as retail interest in meme coins intensifies, with the token outperforming larger peers like Dogecoin and Shiba Inu.

The bull pennant pattern suggests the uptrend could continue if PEPE clears $0.0000040. However, the cooling futures market and negative CMF reading indicate that profit-taking could accelerate, potentially sending the token back to $0.0000038 support. Traders should watch for a decisive close above resistance to confirm the bullish setup, as a failed breakout would likely trigger a sharp reversal given the size of the recent advance.

This article is for informational purposes only and does not constitute investment advice.