Is the Momentum Sustainable or a Classic Meme Coin Trap?

• PEPE is trading at $0.0000051, with a 27% jump. 
• The trading volume has skyrocketed by over 377%.

The second trading day of 2026 opened with a brief green flash, as the crypto market cap spiked 1.24%, landing at around $3 trillion. The majority of the tokens are seeking to climb higher into the bullish zone. Meanwhile, the meme coin market cap has jumped over 8.20% to $44.20 billion in the past 24 hours. 

PEPE, the frog-themed meme coin, has invited the bulls to take control, posting a steady and solid 27.26% gain. It has taken a break from the prolonged bearish wave in the market. In the early hours, the asset traded at a bottom of $0.000004077, and with the bullish shift, the price has mounted to a high of $0.000005155.

At the time of writing, PEPE traded at the $0.000005136 mark, and its market cap chose to stay at $2.17 billion. Consequently, the meme coin’s daily trading volume has skyrocketed by over 377%, reaching the $819.5 million zone. Furthermore, during this timeframe, the market has witnessed a $3.13 million PEPE liquidation. 

Can PEPE Extend Its Rally From Here?

PEPE’s Moving Average Convergence Divergence (MACD) line has crossed well above the signal line, which indicates that the bullish momentum is building. Also, with this crossover, the price could continue to move higher. In addition, the Chaikin Money Flow (CMF) indicator value found at 0.50 suggests strong buying pressure in the meme coin market. Notably, the capital is flowing into the asset, supporting the bullish price action.

The 4-hour trading chart exhibits the bullish encounter, with the PEPE price climbing to the crucial resistance level at around $0.000005156. If the upside pressure continued to strengthen, it could initiate the golden cross to take place, and rise toward $0.000005176 or even higher. 

Conversely, in case the ongoing momentum reverses, a bearish run might appear again, and the PEPE price would fall and test its key support at the $0.000005116 range. With the downside correction intensifying, the death cross unfolds, and the price retraces below $0.000005096. 

Moreover, the daily Relative Strength Index (RSI) at 85.90 implies the meme coin’s overbought condition. It has buying momentum in action, but is also due for a short-term pullback or consolidation unless the trend remains strong. As PEPE’s Bull Bear Power (BBP) reading is resting at 0.00000122, the sentiment is slightly on the positive side. Significantly, the market is close to neutral, and the price direction is likely to remain indecisive.

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