The memecoin sector rebounded sharply over the past 24 hours, with its market capitalization rising 13% to $25 billion. Pepe [PEPE] reflected the broader move, gaining more than 12% at press time. Among major memecoins, it trailed only Shiba Inu [SHIB], which posted more than 30% in daily returns.

PEPE’s trading activity rose alongside its price. Daily volume jumped 182% to $305 million, underscoring the strength of the move. For memecoins, which often trade more on liquidity, positioning, and market sentiment than protocol fundamentals, volume confirmation is especially important when assessing whether a rebound has broad participation. The main question is whether PEPE can clear a key resistance area and sustain its role in the broader memecoin recovery.

PEPE attempts to break resistance

PEPE tested horizontal resistance in the $0.00000290-$0.00000300 range. This zone formed the neckline of an inverted head-and-shoulders pattern, a technical structure that suggested buyers were gaining momentum.

However, sellers continued to challenge the move at the neckline. The SuperTrend indicator also turned bullish, reinforcing the view that upside pressure had strengthened. Still, technical signals depend on follow-through, and a resistance test becomes more meaningful only if price can hold above the breakout area after the initial move.

Open Interest (OI) had also been rising, although it pulled back during the previous five days. On Binance, PEPE’s OI stood at $44.25 million. OI tracks the value of outstanding derivatives positions, so changes in this metric can show whether leveraged traders are adding or reducing exposure during a price move.

For buyers to take control, PEPE would need to break above the neckline and hold above it. If it fails to do so, the rally could remain a pullback within a broader bearish market structure.

A sustained move beyond the neckline would place the bullish target at $0.00000350. If the breakout attempt fails, the bearish target remains at $0.00000250.

On-chain activity supports the move

Beyond the technical setup, PEPE’s on-chain activity also strengthened. The daily transaction amount increased by 11.34% to $39.86 million, while the number of holders rose by only 0.50%. That split suggested more activity among existing participants than a large influx of new holders during the move.

Institutional accumulation was also visible in exchange wallet activity. Cold wallets belonging to exchanges such as Upbit, OKX, and Bithumb increased by more than 2% collectively. Transfers to cold wallets can indicate buying activity, while transfers to hot wallets may suggest potential distribution.

Short liquidations further supported the daily move. More than $2.80 million in short orders were liquidated, adding pressure to the price increase. These liquidations occurred between $0.00000280 and $0.00000304, with the largest liquidated order worth $276,000 at $0.00000297. Liquidations can amplify short-term moves because forced position closures add market orders in the direction of the move.

PEPE rose 12% in the past 24 hours as transaction activity increased and short liquidations climbed alongside the price. The memecoin market was rebounding strongly, but PEPE still needs to turn the neckline into support to stay aligned with the broader sector recovery.