Trading Volume Surges 200%, PEPE Jumps 30% in 24 Hours… Will it Head Straight to $0.00000567?

▲ Pepe (PEPE)/AI Generated Image ©

Pepe (PEPE) is signaling a full-fledged trend reversal with a steep upward rally, driven by a $2 million short squeeze that hit the futures market and a breakout above a long-term resistance line.

According to investment media outlet FXStreet on September 22 (local time), PEPE surged approximately 30% in the last 24 hours, significantly outperforming the gains of most major cryptocurrencies. Following an 18% rise last week and a 19% rise the previous day, it recorded an additional 10% increase on Tuesday, showing a steep cumulative rebound of nearly 50% in less than ten days.

The decisive trigger for this surge was the forced liquidation of large short positions. According to CoinGlass data, out of a total of $3.04 million in liquidations over the past 24 hours, $2.27 million, or 74.6%, was confirmed as short position liquidations. As a short squeeze (buying pressure resulting from the liquidation or covering of short positions) entered the market, futures open interest (OI) increased by over 30% to $418.65 million, and trading volume surged by over 200% to $1.5 billion.

Strong buying enthusiasm is also confirmed across derivatives indicators. The funding rate surged to 0.0306%, indicating that investors are willing to pay a premium to enter long positions. This suggests that, in addition to buybacks from the short squeeze, active market participation by individual investors, characteristic of meme coin bull runs, has begun in earnest.

The technical structure also supports a clear bullish reversal. Pepe broke above the long-term resistance trend line of $0.00000414, which connects the highs of July 22 and September 13, 2025. It then settled above the Fibonacci 127.2% extension level of $0.00000502, measured from the $0.00000456 to $0.00000320 range, laying the groundwork for further gains to the 161.8% extension level of $0.00000567 upon confirmed breakout.

However, the Relative Strength Index (RSI) has soared to around 75, entering the overbought zone, which raises the possibility of short-term upward momentum fatigue and a period of consolidation. If a short-term correction occurs, the previously broken long-term trend line of $0.00000414 and the Fibonacci anchor point of $0.00000456 are expected to act as key support levels.

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