Pepe (PEPE) has rallied more than 15% over the past 24 hours, outpacing many larger digital assets as a wave of short liquidations added fuel to the meme coin's advance. The token has now gained roughly 50% in under 10 days, putting a longer-term resistance breakout and the next potential upside target in focus.
Short liquidations drive the move
Data from CoinGlass shows PEPE recorded $4.09 million in liquidations over the 24-hour period, with short positions accounting for $2.33 million, or nearly three-quarters of the total. A short liquidation occurs when a trader's leveraged bet on falling prices is forcibly closed, a process that can add buying pressure as the position is settled and potentially trigger further liquidations.
The imbalance in PEPE's liquidation data suggests this feedback loop contributed to the latest rally. The surge builds on an 18% gain last week, with the token recording an 18% increase on Monday followed by another 10% advance on Tuesday.
Short liquidations, however, do not reveal how much of the advance is supported by buyers intending to hold PEPE. Once forced position closures ease, the token may need sustained demand to extend its gains.
Derivatives activity accelerates
Activity in PEPE futures has risen sharply during the rally. Open interest, which tracks outstanding derivatives contracts, increased more than 30% over 24 hours to $404 million. Futures trading volume jumped more than 170% to $1.76 billion over the same period.
Together, those figures point to a substantial increase in trading activity and new positions. Rising open interest during a price rally can signal that traders expect further movement, but it does not show whether all of those positions favor higher prices. It can also amplify volatility if leveraged traders are forced to close their positions during a reversal.
PEPE's reported funding rate climbed to 0.0306%. A positive funding rate generally means traders holding long perpetual futures positions are paying those holding shorts. The elevated reading suggests demand for bullish exposure has strengthened.
Technical outlook: Breakout puts $0.00000567 in focus
PEPE's rally has carried it above a descending resistance trendline drawn through its July 22 and September 13, 2025, highs. The line sits near $0.00000414. Holding above it would support the case that the earlier downtrend has weakened.
The next level to watch is the 127.2% Fibonacci extension at $0.00000502, calculated from a move between $0.00000456 and $0.00000320. A sustained breakout above $0.00000502 could open a path toward the 161.8% extension at $0.00000567. These levels are potential areas of resistance, rather than assured price targets.
The Relative Strength Index, or RSI, is near 75. A reading above 70 is commonly described as overbought: it reflects strong momentum, but can also indicate that a rapid advance is becoming stretched. PEPE could continue rising while the RSI remains elevated, although the reading raises the possibility of a pause or pullback.
If the price retreats, $0.00000456 is the first support level identified in the original analysis. Below that, traders may watch the broken trendline near $0.00000414. Whether PEPE holds those levels will help determine if the breakout can develop into a more durable recovery.
This article is for informational purposes only and does not constitute financial advice.
