Pepe Memecoin Soars 61% Amid Frenzied Trading Volume

Pepe [PEPE], a memecoin, has rallied 61% in the past week, according to Glassnode data. This puts it among the strongest performers in the crypto market, along with Dogecoin [DOGE] which rose by 33%. In just 24 hours, Pepe climbed by 23.9%, with trading volume increasing by a whopping 123% as per CoinMarketCap.

The spot inflows were significant, with an $8.18 million influx on August 21st, indicating strong buying pressure. However, Open Interest behind PEPE perpetuals has risen by over 50% in the past three days, Coinalyze data confirms, suggesting a fervent derivatives market.

While traders are calling for profits and caution against a momentum reversal, Pepe's rally could be a bear market rally, with volume surging to potentially overheating levels. A bullish structure shift followed by a pullback toward key former resistance zones could offer a buying opportunity, but until then, investors must remain wary of the long-term downtrend.