Capital is flooding back into PEPE | Credit: Hameem Sarwar
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Key Takeaways
PEPE has broken out of a bearish wedge and is still holding bullish momentum
Selling pressure is easing as profit-taking drops, potentially extending the rally.
A break above $0.0000082 would support PEPE’s price spike to a new high.
PEPE has kicked off the new year with a breakout, surging approximately 63% in the last seven days.
The move follows weeks of compression and corrective price action, with PEPE’s price breaking out of a bearish wedge structure.
As speculative appetite returns to high-risk assets, traders are assessing whether this breakout marks the beginning of a sustained trend reversal.
With PEPE’s price consolidating just below key resistance zones, can the memecoin hit a new peak in 2026?
PEPE Rally Slows Down, It Has Not Failed
Supporting this bullish narrative, indicators continue to reflect an improving upswing despite short-term retracement.
On the 4-hour chart, the Relative Strength Index (RSI) hovers around 58.72, positioning PEPE in bullish territory.
This RSI structure suggests momentum remains constructive, with buyers retaining control as price consolidates near recent highs.
Importantly, the indicator’s ability to hold above the neutral 50 level signals trend strength rather than exhaustion. If sustained, this could leave room for further uptrend.
Meanwhile, the Awesome Oscillator (AO) remains in positive territory, reinforcing the broader bullish bias.
Although the histogram has begun printing red bars, this development indicates slowing momentum rather than an outright trend reversal.
In this market, such AO contractions reflect a healthy pause following an impulsive move.
As long as the AO holds above the zero line, the prevailing upside structure for PEPE’s price might remain intact.
Selling Volume Drops
From an on-chain perspective, PEPE requires profit-taking to cool off the rally and maintain its upswing.
Santiment data shows that the number of daily on-chain transactions executed in profit spiked on Jan. 1, which often signals that holders were cashing out as the price moved higher.
However, that pressure has eased since then.
As of this writing, profitable transactions have declined, which suggests fewer traders are rushing to lock in gains.
PEPE Transaction Volume in Profit | Credit: Santiment
PEPE Price Outlook: Bullish Setup
After breaking out of a bearish wedge on the daily timeframe, the Chaikin Money Flow (CMF) flipped into positive territory.
Furthermore, PEPE’s price is now testing immediate resistance levels, with buyers showing increasing strength.
The Moving Average Convergence Divergence (MACD) shows a similar pattern, with the 12-day EMA crossing above the 26-day EMA, reinforcing the bullish bias.
While the histogram bars are shrinking, suggesting a slight cooling in momentum, the overall trend remains upward.
A sustained push above current resistance could open the door for a rally toward previous swing highs.
At the same time, the wedge breakout and moving averages continue to provide strong support in case of a PEPE price pullback.
At the time of writing, PEPE’s price shows a reversal from a key resistance zone, although it remains positioned between the 0.236 and 0.382 Fib levels.
This range suggests that while short-term profit-taking is occurring, the overall bullish price structure of PEPE remains intact.
A move above the $0.0000082 level could signal a continuation toward higher Fib targets, while support near the $0.0000061 level may act as a buffer against deeper pullbacks.
However, at some point, the memecoin might experience a pullback. But if buying volume rises for most of the year, PEPE’s price could climb to $0.00017. This could also drive it to a new all-time high.
On the other hand, failure to hold above the $0.0000061 support level could trigger a deeper retracement, potentially testing the next key support level at $0.0000037
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
