PEPE could rally above $0.000006 as derivatives data flash bullish signals

The cryptocurrency market’s bullish start to the week has stalled, with Bitcoin dropping to the $90k region.

Altcoins are also in the red as they retest the weekend lows after performing excellently on Monday.

$PEPE, the native token of the Pepe memecoin, has dropped below the $0.000005 region after losing 1% of its value in the last 24 hours.

However, the technical outlook remains mixed as the broader crypto market remains in a consolidating phase.

The derivatives and on-chain data have flashed a bullish signal, suggesting that $PEPE’s price could surge higher in the near term.

$PEPE’s derivatives and on-chain data suggest a bullish outlook

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$PEPE is down 1% in the last 24 hours and is currently trading above $0.000004 per coin. However, the memecoin is regaining retail demand as derivative traders are increasing their positions in the market.

According to CoinGlass, $PEPE’s futures Open Interest (OI) has seen a 7.87% increase over the last 24 hours, rising to $257.18 million.

With $PEPE and other memecoins, recovery runs are mainly driven by retail demand and speculation. Hence, $PEPE could embark on a recovery as retail demand continues to increase.

Furthermore, Santiment data shows a surge in network growth to 623 on Monday, up from 448 on Sunday.

This surge suggests an increase in the number of new addresses transacting with $PEPE for the first time.

The percentage of $PEPE supply in profit currently stands at 23.20%, after dropping to the 20% region over the weekend.

Santiment added that whales executed 36 transactions worth over $1 million on Sunday, allowing the memecoin to surge past the $0.00005 mark on Monday.

The memecoin could rally higher in the near term as more whales accumulate $PEPE.

Will $PEPE surge past the $0.0000060 resistance?

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The $PEPE/USD 4-hour chart is bullish and efficient, as Pepe has added 15% to its value in the last seven days.

At press time, $PEPE is trading below $0.0000050, down 1% in the last 24 hours.

The coin could retest the $0.00000395 support level, which aligns with the November 21 low, before rallying higher.

However, the momentum indicators on the 4-hour chart are bullish, suggesting that buyers are currently in control of the market.

The Relative Strength Index (RSI) at 50 is rising toward the overbought region, suggesting a growing buying pressure.

Furthermore, the Moving Average Convergence Divergence (MACD) remains steady above the zero line, with mainly green histogram bars, indicating bullish momentum.

If the rally continues and $PEPE closes its daily candle above $0.00000521 level marked by the November 4 low, the memecoin could retest the next major resistance level at $0.00000650, followed by the 200-day EMA at $0.00000839.

However, failure to close above the $0.00000521 level could see $PEPE grab the Transactional Liquidity (TLQ) at $0.00000430 before rallying higher.