PEPE's Bullish Week: Prices Surge by 39%, Yet Conceals Potential Major Crisis Ahead

Pepe (PEPE), a memecoin based on the Solana blockchain, has experienced a remarkable surge in value, rising by over 35% in the past week following the announcement of its listing on Coinbase's perpetual contracts.

As of the latest data, PEPE is trading at $0.000006692, making it the fourth-highest gainer in the crypto market over the past seven days.

Bullish Momentum Takes Hold:

• PEPE's recent price action indicates a shift from bearish to bullish sentiment, as evidenced by the MACD line crossing above the signal line on the 1-day chart. While the MACD crossover suggests increasing bullish momentum, it's noteworthy that the MACD remained below the zero line, indicating lingering bearish elements.
• The Elder-Ray Index, measuring the balance between buyers and sellers, returned a positive value, indicating bullish dominance in the market.
• PEPE's Directional Movement Index (DMI) showed a bullish signal as the positive directional index crossed above the negative index, indicating a stronger uptrend.

Source: PEPE/USDT on TradingView

Unveiling the Hidden Crisis: Understanding the Unseen Threats：

• Despite the bullish momentum, caution is warranted. PEPE's futures open interest has increased by 62%, reaching $63 million, suggesting growing interest in its derivatives market. However, the funding rate across crypto exchanges was negative at the time of reporting, indicating a rise in short positions by futures market participants.
• While PEPE has seen steady gains in the last week and a 3% increase in the last 24 hours, the negative funding rate suggests increased bearish sentiment in the futures market.

In summary, while PEPE has shown bullish signals in its recent price action, traders should remain cautious due to the negative funding rate and the potential for increased short positions in the futures market.