PEPE’s Recent Price Surge: Can It Last This Year?

PEPE has climbed more than 20% in a single day, pushing renewed attention toward the memecoin sector. 

With price returning to historically important support zones and open interest rising sharply, traders are debating whether this move marks the start of a broader recovery or another short term spike. 

Social engagement has strengthened notably, yet long term performance still shows significant drawdowns. The key question now is whether momentum can sustain throughout 2026.

Key Takeaways

• PEPE gained over 20% in 24 hours, with trading volume exceeding $1.21 billion and open interest rising by approximately $30 million.
• Funding rates have turned negative, suggesting heavy short positioning that could fuel a squeeze if momentum holds.
• Whale accumulation and elevated social sentiment provide short term support, but volatility risk remains high.

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Is PEPE Setting Up for Another Breakout?

Recent data shows PEPE retracing toward its early April 2024 support zone around $0.0000035 before bouncing strongly. Historically, that area preceded a significant rally, which has led traders to draw comparisons with prior cycles.

Open interest has increased by nearly $30 million this week, rising to approximately $221 million. 

A 15% jump in open interest suggests new positions are entering the market rather than merely short covering. When open interest expands alongside rising price, it often indicates active speculation building around directional expectations.

At the same time, funding rates have flipped negative. Negative funding typically means short sellers are paying long traders, reflecting a skew toward bearish positioning. 

If price continues to rise under these conditions, short sellers may be forced to close positions, creating a short squeeze dynamic.

On the social side, engagement metrics show a notable increase. Tweets referencing PEPE reached 888 within 24 hours, while positive sentiment ratios climbed above 80%. Such shifts in sentiment often coincide with heightened retail participation.

However, sentiment driven rallies tend to amplify volatility. The memecoin market has already lost substantial capital in 2026, and PEPE itself remains down significantly on a yearly basis. 

While the current setup resembles a potential bear trap scenario, sustainability depends on follow through buying rather than isolated bursts of enthusiasm.

Read also: Introduction to Bitrue Alpha: Find 100x crypto gems

On-Chain and Whale Behaviour: What Are the Signals?

Whale behaviour has added another layer to the bullish narrative. Reports indicate that the top 100 wallets have accumulated more than 23 trillion PEPE tokens since the previous market downturn. Accumulation during weakness often suggests long term conviction among larger holders.

The divergence between spot and perpetual markets is also noteworthy. Heavy short positioning combined with increasing spot demand creates imbalance. If spot buying persists while derivatives traders remain net short, forced liquidations could amplify upward movement.

PEPE also demonstrated relative strength against Bitcoin on an intraday basis, rising over 4% in the PEPE BTC pair. Relative strength can signal capital rotation into alternative assets during speculative phases.

Despite these signals, liquidity conditions and broader market appetite remain critical. Meme tokens are particularly sensitive to overall risk sentiment. If Bitcoin or Ethereum experience strong downward pressure, memecoins often face exaggerated corrections.

Furthermore, PEPE’s historical price structure shows repeated sharp rallies followed by equally sharp pullbacks. While the current configuration may resemble previous accumulation phases, confirmation requires sustained higher highs and stronger base formation.

Short term indicators appear constructive, but longer term durability depends on consistent demand and broader market stability.

Read also: How to Use Bitrue Alpha: Early Crypto Gems

How to Trade PEPE on Bitrue

To trade PEPE efficiently, open the Bitrue app and navigate to the spot or futures market to search for the PEPE trading pair, then place a market order for immediate execution or a limit order to define your entry price. 

Bitrue provides high liquidity, structured order tools, and transparent charts that help manage slippage during volatile conditions.

1. Register for a Bitrue account and complete identity verification.
2. Deposit USDT or other supported assets into your wallet.
3. Search for PEPE in the spot or futures trading section.
4. Choose between a market order for instant execution or a limit order for controlled entry.
5. Monitor your position through the portfolio dashboard and manage risk carefully.

Volatility in memecoins can be extreme. Structured position sizing and clear exit planning remain essential when trading assets driven heavily by sentiment.

Read also: Is Bitrue Alpha Worth It? Give it A Try Now

Conclusion

PEPE’s recent 20% surge reflects a combination of rising open interest, negative funding rates, whale accumulation, and elevated social sentiment. 

These factors create conditions that can support a short squeeze and short term continuation. However, memecoin rallies are historically volatile and sensitive to broader market shifts. 

While the current setup appears constructive, sustainability will depend on continued demand and market stability. 

For traders seeking structured liquidity and efficient execution, Bitrue offers a reliable platform for managing PEPE exposure more safely.

FAQ

Why did PEPE rise by over 20%?

The surge coincided with rising open interest, increased whale accumulation, negative funding rates, and stronger social sentiment.

What does a negative funding rate mean for PEPE?

It indicates that short sellers are dominant in derivatives markets. If price continues to rise, shorts may be forced to close positions, creating a squeeze.

Is whale accumulation important?

Large wallet accumulation can signal longer term conviction, though it does not guarantee price continuation.

Can PEPE repeat its previous rally?

It is possible if momentum holds and short squeezes intensify, but memecoin volatility remains high and outcomes are uncertain.

Where can I trade PEPE safely?

You can trade PEPE on Bitrue by registering an account, depositing funds, and accessing the PEPE spot or futures market with structured trading tools.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.