Pepe breaks August highs after 32% jump – BUT THIS warns of impending dip

Pepe [PEPE] broke above $0.0000044 after weeks of consolidation between August and early September.

The meme-token rose 32% in 24 hours to reach $0.00000536. The move also cleared its August high of $0.0000046.

That breakout created a new higher high and strengthened PEPE’s broader bullish structure. However, the rally faced an immediate test from overbought conditions.

PEPE’s RSI reached 78.09 after the sharp advance. This raised the risk of profit-taking if buying pressure weakened.

The first support level stood near $0.0000047, close to the breakout area. A successful retest could strengthen the move above resistance.

A drop below $0.0000047 could send the memecoin toward $0.0000044. Losing that level would weaken the current bullish structure.

PEPE derivatives gain momentum

Meanwhile, the derivatives positioning for PEPE expanded significantly, adding another layer to the rally. Perpetual Open Interest increased to $245.1 million, reflecting a 51.80% increase over the last 24 hours.

Of that lot, Binance is currently holding the largest amount with $146.1 million, while Bybit is second with $98.7 million of open interest.

Additionally, the fact that there is so much concentration on Binance and Bybit simply indicates that positioning remains heavily tied to major derivatives venues.

While the OI growth may provide a potential source of additional volatility in the event that the bull run fades. Yet, reversals may cause leveraged positions to unwind. This would likely amplify the selling pressure.

For now, the rapid expansion of open interest does suggest that speculation is increasing. However, PEPE will need to see continued buying activity in the spot market for it to maintain the growing leverage.

Can PEPE hold the breakout?

The next test for PEPE’s rally is whether the forced liquidations that pushed prices higher will continue. The fact that there have been only $395,000 in liquidation orders indicates that the price movement from the last few days may be past the point where the initial squeeze occurred.

Yet futures activity remains dominant, with $1.77 billion in turnover against $439.64 million in spot volume. This large imbalance suggests that the rally will require continued speculative interest to sustain itself.

More specifically, the ability of the price to hold at or above the $0.0000044 level will determine if buyers have absorbed the recent upward pressure in prices and whether they are merely extending the current temporary squeeze.

On the other hand, a drop below $0.0000044 could trigger more selling. PEPE needs stronger spot buying to keep the breakout intact.

Final Summary

• • PEPE broke above $0.0000044 and hit $0.00000536, but a high RSI could trigger profit-taking.
  • PEPE needs stronger buying to hold $0.0000044 and keep the breakout going.