Pepe Coin Price at Make-or-Break Level – Open Interest Divergence Hints at Rally
Highlights
- Pepe Coin price could rebound if traders seek to fill an FVG gap between $0.0000115 and $0.0000122.
- The RSI is at oversold levels, which may trigger a short-term correction of sellers are exhausted.
- PEPE's open interest is flashing a divergence as it rises despite the price dropping.
Pepe Coin (PEPE) is flashing a rare bullish signal—a 15% surge in open interest amid a market crash. With PEPE hovering at $0.00000885, traders are watching this $539M divergence for a potential snapback to $0.0000115. Here’s why the next 48 hours are critical.
Why This Matters for Traders: PEPE’s Fair Value Gap (FVG) has a 92% historical fill rate on 1-day charts, making this a high-probability reversal setup.
Will Pepe Coin Price Rally After Recent Dip?
Pepe Coin has been on a steep downtrend since June 11. This decline has seen PEPE, which was one of the top-performing meme coins in May, shed more than 20% of its value within seven days. Amid this dip, Pepe Coin price has created a fair value gap (FVG) that could act as a magnet in the short term.
The FVG gap appeared on June 12 after Pepe Coin dropped by 16% from $0.0000134 to $0.0000112 within three days. This gap usually shows an imbalance that the market might gravitate towards to fill the inefficiency before resuming the previous trend, which in this case, is a downtrend.
If the price of Pepe Coin attempts to fill this gap, the first target lies at $0.0000115. Additionally, a decisive close above the midline of this FVG gap, also known as the consequential encroachment, could kickstart a strong bullish reversal.
One of the indicators suggesting that Pepe Coin price may surge in the near term is the RSI, which is close to oversold levels at 31. If sellers are exhausted, it makes it likely that PEPE could rebound.
However, the AO histogram bars may invalidate this bearish outlook as they lengthen in size within the negative region. This shows that the momentum that has been causing the downtrend for more than one week is gaining strength. Until this indicator flips bullish again, Pepe Coin price could continue to drop.
PEPE’s Open Interest Spikes 15%
Pepe Coin’s open interest is rising after surging by 15% within 24 hours, according to Coinglass data. At press time, this metric stood at $539 million after adding more than $90 million within 24 hours, highlighting that futures traders are opening new positions on the meme coin.
As open interest rises, Pepe Coin’s funding rate has remained positive, which creates a bullish Pepe Coin price prediction. The funding rate indicates that traders are opening long positions towards PEPE, as they anticipate that the price is going to rebound. The bullish divergence could be a catalyst that aids PEPE’s price in recovering.
To sum up, Pepe Coin price may recover to fill an FVG gap that lies above the current price at around $0.0000115. This recovery may happen soon as the RSI signals that sellers could be exhausted. Meanwhile, PEPE’s open interest has spiked by 15% within 24 hours, signalling high interest from derivative traders.
Frequently Asked Questions (FAQs)
1. Why is Pepe Coin price dropping?
2. Can Pepe Coin recover?
3. Why is PEPE’s open interest rising despite the drop?
- CZ Endorses Hyperliquid Rival Aster DEX, Token Rallies 1,500%
- Tom Lee’s BitMine Adds $84M in ETH as Expert Predicts Ethereum Rally to $5K
- Grayscale’s Crypto Index Fund Sees ‘Solid Start’ as SOL, XRP Institutional Demand Climbs
- Senate Democrats Urge Republicans for ‘True Collaboration’ to Quickly Pass CLARITY Act
- Crypto Market Correction Intensifies As S&P 500, DXY Enter Dangerous Territory
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
