PEPE’s October rally saw a significant 227% increase in price, sparking speculation about the possibility of a similar breakout in the near future. Analysts have pointed to a potential 100% upside for the memecoin, drawing parallels with its previous breakout patterns. In 2024, PEPE experienced an impressive 1,435% year-over-year gain, closing the year with exponential returns. However, the current market correction has seen PEPE trading 61% below its Q1 2025 opening price.
A closer look at PEPE’s technical setup reveals an interesting pattern in its 1-day chart, resembling the late October consolidation range that preceded the previous breakout. This consolidation phase was followed by a sharp rally, with PEPE peaking at $0.00002597 on 14 November. The question now is whether PEPE is gearing up for a repeat performance, sparking speculation among investors and traders.
Analyzing PEPE’s fundamental setup, it is observed that active addresses on the network surged from 2,500 to 20,500 in mid-November, coinciding with the token’s price movement. However, current network metrics show relatively flat activity, with active addresses at 2,587, similar to previous consolidation phases before breakout events. This accumulation pattern could hint at a potential price shift in the near term.
Despite the potential for a speculative rally, the risk of a sharp reversal looms large for PEPE. Derivative market data shows an increase in Open Interest on PEPE Futures, surpassing November levels and reaching $301.48 million at press time. The spike in Open Interest, coupled with muted on-chain activity and spot market volume, raises concern about a possible liquidation cascade and puts short-sellers in control, emphasizing the need for cautious risk management.
While historical patterns suggest a potential breakout, the reality of the crypto market demands a data-driven approach. PEPE’s gains have been driven by leveraged liquidity rather than organic buying, making the rally vulnerable to sudden reversals. Investors and traders should be wary of relying solely on historical coincidences and instead focus on solid data to navigate the volatile crypto market.
