Hope for the Meme Coin Community

The meme coin community is feeling hopeful after Pepe recently posted one of its largest price movements in recent months. The token is up more than 13% over the past day, currently trading at 0.00000906 USDT. It has also made a clean breakout above the 50-day Exponential Moving Average (EMA), a crucial technical level that suggests a possible trend reversal. This is a major breakout.

PEPE had been in a downward trend for weeks, held back by resistance from significant moving averages. However, a clear 50 EMA breakout and today’s robust bullish candle indicate that bears might be losing ground. Crucially, PEPE appears to be approaching the psychological milestone of $0.0000100, which could increase buying pressure, marking a potential first step toward removing a zero from its price.

Although it is not yet in overbought territory, the RSI’s technical jump to 61 indicates increasing momentum, allowing for further short-term benefits. However, volume has been continuously dropping since early March, suggesting that this rally may not be gaining broader market participation necessary for a long-term run.

Bullish Case

If PEPE continues moving toward the next resistance around $0.00001094, it may ultimately test the $0.00001180 zone which served as solid support prior to February’s breakdown. Holding its position above the 50 EMA and building on this momentum could signal the start of a long-term uptrend and validate a wider reversal.

Bearish Case

Conversely, if the price retraces below the 50 EMA and momentum wanes, it could be viewed as a fakeout, potentially trapping late buyers and pushing PEPE back toward the support zone between $0.00000770 and $0.00000820. While the trend currently favors bulls, volume and follow-through are crucial in determining if PEPE’s breakout has any lasting potential.