PEPE Eyes Recovery as Support Holds and Market Activity Stabilizes

• PEPE defends 0.618 Fib and reclaims Ichimoku base, signaling cautious bullish momentum
• Open interest stabilizes near $420M, suggesting selective leverage rebuild for breakout
• Spot flows ease selling pressure as intermittent inflows hint at early accumulation phase

Pepe (PEPE) has entered a cautious recovery phase after stabilizing above a critical technical level on the 4-hour chart. Recent price action suggests that sellers have lost short-term control, while buyers attempt to rebuild momentum. Market participants now focus on whether this rebound can evolve into a broader continuation move. 

Price Structure Shows Improving Short-Term Momentum

PEPE recently defended the 0.618 Fibonacci retracement near $0.00000581, which acted as a pivotal inflection point. After holding this level, price moved back above the Ichimoku cloud base. That move often signals improving short-term trend conditions. Hence, traders now view the structure as cautiously bullish on lower timeframes.

Immediate resistance stands near $0.00000649, aligned with the 0.786 Fibonacci level. A decisive break above this zone could allow price to revisit $0.00000727. 

That area previously attracted heavy distribution and remains a key test for buyers. However, upside momentum may struggle without a clear expansion in trading volume.

On the downside, $0.00000581 has shifted into first-line support. A failure there would likely push price toward $0.00000545. Further weakness could expose the $0.00000503 area, which aligns with deeper structural support. Consequently, the bullish outlook weakens if price falls back below the cloud and loses the $0.00000500 handle.

Open Interest Signals Cautious Leverage Rebuild

Derivatives data adds another layer to the outlook. PEPE open interest has moved through repeated expansion and contraction phases. Late 2024 saw steady growth in leverage as price trended higher. That buildup later unwound during sharp volatility events, leading to broad deleveraging.

During mid-2025, open interest climbed again while price consolidated. That divergence suggested speculative positioning rather than strong spot demand. A sharp decline followed as risk sentiment deteriorated. 

Recently, open interest has stabilized near $420 million. This stability indicates renewed participation, though traders appear more selective. Moreover, leverage now seems positioned for a breakout rather than chasing momentum.

Spot Flows Hint at Early Stabilization

Spot flow data provides additional context. For much of the past period, PEPE experienced persistent net outflows, reflecting steady distribution. Large outflow clusters aligned with price weakness and declining confidence. However, that trend has begun to soften.

Recent sessions show reduced selling pressure and intermittent inflows. Notably, a $6.24 million inflow on January 14 suggests renewed interest. Additionally, the decline in aggressive outflows hints at stabilization rather than capitulation. 

Sustained inflows would strengthen the case for accumulation. Until then, PEPE remains in a transitional phase, balancing recovery momentum against lingering caution.

Technical Outlook for PEPE Price

Key levels remain clearly defined for PEPE as price trades within a developing recovery structure. 

Upside levels sit at $0.00000649 as the first hurdle, followed by $0.00000727 as the next key objective. A sustained breakout above this zone could open room toward higher extensions, but momentum confirmation remains essential. 

On the downside, immediate support rests at $0.00000581, which aligns with a critical Fibonacci retracement. Below that, $0.00000545 and $0.00000503 form a deeper demand zone. The resistance ceiling near the $0.00000649 region acts as the level to flip for stronger bullish continuation.

The technical picture suggests PEPE is stabilizing after a corrective phase, with price reclaiming the Ichimoku cloud on the 4-hour chart. This structure points to improving momentum rather than exhaustion. Directional indicators also show trend strength rebuilding.

Will PEPE Move Higher?

The PEPE price outlook hinges on whether buyers can defend $0.00000581 while pressing against the $0.00000649 resistance. A successful breakout could trigger volatility expansion toward $0.00000727. 

However, failure to hold current support would weaken the recovery and expose lower levels near $0.00000545 and $0.00000503. For now, PEPE trades in a pivotal zone, where confirmation from volume and flows will likely determine the next decisive move.