Pepe Coin (PEPE) may be on the verge of a price reversal as its open interest spikes by 15% amid a broader market downturn. The meme coin is currently trading at $0.00000885, down over 20% from its June highs, but a technical divergence could signal a potential rally to $0.0000115 in the coming days.

Open Interest Surge Signals Market Activity

According to Coinglass data, PEPE’s open interest rose by 15% in 24 hours, reaching $539 million. This increase suggests more traders are opening futures positions in anticipation of a potential price rebound.

Despite the price downtrend, PEPE’s funding rate remains positive, showing that long traders are dominant. This metric is used to balance the price difference between spot and futures markets. A positive funding rate often indicates bullish sentiment among futures traders.

The rise in open interest during a price drop creates a divergence. Historically, such divergences can result in strong price reactions, especially if supported by technical indicators.

Fair Value Gap at $0.0000115 Draws Attention

Pepe Coin has developed Fair Value Gap (FVG) on the 1-day chart that has been created following a sharp 16 percent decline since June 11-June 13. The gap signifies lack of proportion that can recur in the market.

It is not uncommon to find FVGs that serve as magnets to price action. Based on historical data of performance, FVGs on the daily PEPE chart have a fill rate of 92 percent. Assuming that the current trend continues, the price may go back to the $ 0.0000115 level.

A bullish consequence would also reaffirm a bullish recovery in the event of a close above the midline of the FVG, the consequential encroachment. This is where it is usually decided as to whether the price is going to fill the whole gap or follow this particular direction.

Technical Indicators Show Mixed Signals

The PEPE Relative Strength Index (RSI) is close to oversold and is rated at 31. The lower the value is than 30, the more the oversold conditions would be present and this could show that the position the sellers are in is becoming unstable.

Nevertheless, Awesome Oscillator (AO) still has shapes of longer bars in the negative area. This indicates that worrying momentum remains in effect. The downtrend may extend as long as AO does not flip bullish.

The technical arrangement indicates that there is a possibility of recovery in the near future in case the market strain cools off. These levels are also being watched but closely by traders hoping to know the extent of a rebound.

Price Analysis Suggests Key Support and Resistance Zones

Writing, PEPE is trading above the support zone of $0.00000870. Any dip below this area may prove the bullish theory useless and clear the path towards additional drops.

In the event that PEPE manages to fill the FVG, countering price occurs at a value of $0.0000112. It can take a decisive step above that and shove the price to 0.0000115. Breakout strength and volume support can be monitored by traders looking at these levels.

All in all, the price is weakening, but an increase in the open interest and FVG position shows the potential bullish reversal. Traders should, however, monitor funding rates, RSI, and oscillator momentum to establish any breakout moves.