Pepe maintained its bullish momentum on Friday after gaining a combined 22% over the previous two trading days, as whale accumulation, declining exchange supply, and rising speculative activity strengthened the meme coin's near-term outlook.

The frog-themed token is up approximately 25% this week. The rally has also pushed PEPE back above several important technical levels, drawing attention to whether the recent move can extend beyond short-term trading interest and toward its 200-day exponential moving average at $0.00000363.

Whale transactions reach highest level since March

Large investors appear to be returning to Pepe as its price recovers from recent lows. Santiment recorded seven PEPE transactions worth more than $1 million each on Thursday, the highest daily total since March 16.

The increase in high-value transfers points to renewed activity among whales, although large transactions can represent either accumulation or distribution. Wallet balance data, however, suggests that major holders have been accumulating tokens while the amount of PEPE available on exchanges has declined.

The supply of PEPE held on cryptocurrency exchanges has fallen to 81.30 trillion tokens from 82.75 trillion on August 12. The 1.45 trillion-token decline reduces the amount of PEPE immediately available for trading and potential sale.

Over the same period, leading non-exchange addresses increased their combined holdings to 84.04 trillion PEPE from 80.50 trillion. That addition of 3.54 trillion tokens reinforces signs of fresh demand from large-wallet investors.

Whale accumulation near a market swing low can indicate that influential holders expect a recovery. Continued buying combined with declining exchange balances could therefore support further gains, provided broader market sentiment remains favorable.

Derivatives demand builds

Demand is also increasing in the derivatives market. PEPE futures open interest climbed to a three-month high of $250 million, up from $209 million the previous day, according to CoinGlass.

The $41 million increase represents growth of approximately 19.6% and indicates that traders are opening new positions or adding exposure to existing contracts.

PEPE's open interest-weighted funding rate stands at 0.0095%. The positive reading means long-position holders are paying short traders, reflecting a bullish bias.

However, rising open interest alongside positive funding can also increase liquidation risks if the price reverses sharply. For a token like PEPE, which often attracts rapid speculative flows, that makes positioning more sensitive to sudden shifts in momentum.

Pepe price targets the 200-day EMA

PEPE's near-term technical outlook has improved after the latest rally pushed the token above the 50-day EMA at $0.00000283 and the 100-day EMA at $0.00000300. The meme coin has also surpassed its June 15 high of $0.00000314, clearing another important resistance level.

The next major barrier sits at the 200-day EMA near $0.00000363. Because PEPE remains below this long-term trend indicator, the broader technical structure has not yet turned decisively bullish. A confirmed breakout and sustained close above $0.00000363 could strengthen the recovery and open the path toward the May 10 high at $0.00000459.

The Moving Average Convergence Divergence (MACD) line has crossed above its signal line and moved further into positive territory. A bullish histogram has also emerged above the zero line, indicating that buying momentum is strengthening.

If PEPE fails to overcome the 200-day EMA, traders may begin taking profits following the sharp weekly advance. The 100-day EMA at $0.00000300 and the 50-day EMA at $0.00000283 could provide initial support during a pullback. A decisive decline beneath both indicators would weaken the bullish outlook and expose the July 8 low at $0.00000255.