PEPE surges 25% in a single day, can the Meme coin king continue its strong momentum?

Meme coin PEPE has recently experienced a strong surge, with a price increase of approximately 25% within 24 hours, becoming one of the most prominent assets in the crypto market since early January. This rally not only broke through a long-term compression and consolidation pattern but also provided short-term traders with a clear bullish signal. Meanwhile, the entire Meme coin sector is also rallying in tandem, with an 8.9% increase over the past 24 hours, indicating a noticeable market sentiment recovery. However, while optimistic about a short-term rebound, it is also important to remain aware that risks still exist.

What the technical analysis confirms

According to the latest news, PEPE has completed a structural reversal on the daily chart, successfully breaking through the key supply zone at 0.0000044-0.0000049 USD. What does this breakout mean? Simply put, the bulls have finally gained control of the resistance level, confirming a short-term bullish structure.

Previously, PEPE had been in a prolonged compression within a descending wedge pattern, trading within this narrow range for several months, as the market digested ongoing selling pressure. In this scenario, most traders were waiting for a clear direction—either a continued decline breaking support or a rebound breaking resistance. Now, the direction is clear: the bulls have won.

More importantly, this rally is not purely driven by sentiment. On-chain data shows that the spot CVD (Cumulative Volume Delta) remains positive, indicating that buying pressure was already present before the rally, which suggests a certain level of capital backing supporting this move.

Why the Meme coin sector is collectively strengthening

PEPE’s performance is not isolated. The entire Meme coin sector is rallying, and there are several reasons worth noting.

First, market sentiment at the beginning of the year has significantly improved. According to relevant news, the White House issued a declaration titled “Welcome to the Golden Age,” signaling a macro environment that has turned favorably for crypto. Additionally, U.S. crypto ETFs are expected to attract over $32 billion in 2025, with ongoing institutional inflows providing fundamental support for the market. Against this macro backdrop, risk appetite has naturally increased, making high-volatility assets like Meme coins attractive to capital.

Second, after four years of a bear market, altcoins are generally at a critical “bullish reversal” phase. Market liquidity bottomed out in November 2025, and a new upward cycle is gradually beginning. Capital typically follows a rotation pattern: Bitcoin → mainstream coins → high-quality altcoins, and PEPE, as a representative of Meme coins, naturally benefits from this rotation.

Balancing short-term opportunities and risks

From a technical perspective, if the rebound continues, PEPE could test two key resistance levels:

The achievability of these targets depends on several factors: whether Bitcoin can maintain strength, whether the Meme coin sector’s sentiment can persist, and whether there will be large-scale profit-taking.

However, caution is warranted as the weekly chart remains relatively weak. The price is still below the 20-week and 50-week moving averages, OBV momentum has not yet broken previous highs, and the sustainability of capital inflows needs further confirmation. This suggests that the current rally is more likely a short-term rebound rather than the start of a confirmed new long-term bull market.

Trading strategy considerations

For traders with different risk tolerances, strategies should differ:

• Aggressive traders can participate in the trend but should set clear stop-loss points.
• Conservative investors may focus on potential pullback zones around 0.0000054 USD or 0.0000046 USD, waiting for more stable entry opportunities.
• Meme coin markets often exhibit “quick rise, shallow correction” characteristics, so chasing highs aggressively is not advisable.

Regardless of the approach, risk management and position control are always more important than simply chasing gains.

Summary

PEPE’s recent rally is driven by a confluence of technical breakthroughs, capital support, sector-wide coordination, and market sentiment recovery. The short-term trend is clearly bullish, and opportunities are relatively straightforward. However, this does not mean one can confidently chase the top—weekly charts remain weak, the long-term trend is uncertain, and profit-taking risks still exist.

For traders, the key is to distinguish between a short-term rebound and a long-term trend. In high-volatility markets like Meme coins, making the right move at the right time is already challenging; knowing when to take profits is even more crucial. Currently, PEPE is more suitable for short-term trading rather than long-term holding, and maintaining a clear mind about this is essential.