The memecoin sector has emerged as one of the strongest performers in the cryptocurrency market over the past week, according to Glassnode data. While Dogecoin rose 33% over the week, Pepe [PEPE] rallied 61% during the same period. CoinMarketCap data shows that PEPE climbed 23.9% over a 24-hour period, with its daily trading volume increasing by 123%.
Spot inflows for the token were strong, recording $8.18 million on August 21 to reflect aggressive buying pressure. Derivatives market activity also intensified, with Coinalyze data confirming that Open Interest behind PEPE perpetuals increased by over 50% across a three-day period. This derivatives fervor aligned with rising spot trading volume, which heated up over the past month.
Technical indicators reflected the heavy buying pressure and upward momentum. The Chaikin Money Flow (CMF) indicator sat at +0.32, and the Moving Average Convergence Divergence (MACD) highlighted heavy upward momentum over several days. Heavy trading volume, rising Open Interest, short liquidations, and intense bullish sentiment following a 23% weekly move by Bitcoin contributed to the rally, allowing PEPE to decisively beat the local supply zone at $0.0000031.
Despite these gains, the 1-day timeframe swing structure remains bearish. Analysts note that rapid price gains can sometimes serve as profit-taking opportunities while retail traders experience FOMO, serving as a warning sign of a potential bear market rally. A daily session close above the swing high at $0.00000459 is required to confirm a bullish shift in the swing structure. Until that occurs, market participants have been advised to remain cautious of the long-term downtrend.
A confirmed bullish structure shift followed by a pullback toward key former resistance zones—such as $0.0000031 or $0.0000040—could offer potential buying opportunities. Conversely, a price slump back below $0.0000031 would indicate that bears retain control of the PEPE trend.
