Pepe, the internet’s favorite frog-faced meme coin, is back in the spotlight after posting an impressive 73% rebound this month. After dropping to a low of $0.000005895 on March 10 — matching its August 2023 bottom — Pepe has since surged to $0.000008960, marking its highest point since February 24. The strong bounce has reignited investor excitement and led to renewed speculation about whether the token could push toward a new all-time high.

One of the key driving forces behind the rally is the massive increase in futures open interest. According to recent data, Pepe’s open interest surged to over $324 million, more than doubling from this month’s low of $166 million. This is the highest level seen since February 2. In crypto markets, rising open interest is typically a bullish signal, indicating growing trader participation and increasing capital flowing into futures contracts.

Adding fuel to the bullish fire is a noticeable wave of investor accumulation. Exchange reserves for Pepe have fallen by 0.73% in the past seven days, now sitting at 240.7 trillion tokens. This decline implies that holders are moving their tokens off exchanges – a common strategy when they plan to hold rather than sell. This kind of behavior often precedes longer-term price appreciation.

Further confidence comes from the behavior of top-performing traders. The most profitable Pepe holder last week earned an eye-popping $607,000 and still holds 91% of their position. The next three top traders show even stronger conviction, each retaining nearly 100% of their holdings, signaling that big players are not in a rush to exit their trades.

This renewed momentum in Pepe coincides with a broader shift in market sentiment. The Crypto Fear & Greed Index, a widely watched measure of investor emotions, has climbed from “extreme fear” levels of 18 to a more neutral 34. This reflects a broader recovery across the crypto market, which has once again flirted with the $3 trillion total market cap mark.

From a technical perspective, the daily chart shows a falling wedge breakout – a classic bullish reversal pattern. This wedge formed as the price consolidated between two descending trendlines, setting the stage for a breakout. Indicators also support the bullish outlook. The Relative Strength Index (RSI) has risen to 60, and the MACD lines are approaching the zero line, both pointing to increasing momentum.

Pepe has also moved slightly above its 50-day Exponential Moving Average (EMA), often seen as a critical threshold for short-term bullishness. The next big resistance lies around $0.00001717 – the 50% Fibonacci retracement level. If Pepe can breach that point, the token may be on course to retest or even break past its all-time high.

With retail investors watching closely, traders placing bullish bets, and whales holding firm, Pepe is building the kind of setup that could lead to explosive price action. Whether or not the meme coin actually surges another 200% will depend on broader market dynamics, but the signs are aligning for a potentially wild ride.