Upbeat week for PEPE: prices rose 39%, but traders should be careful as…

• The price of PEPE has increased by 39% in the last seven days.
• However, a negative funding rate shows that futures traders expect prices to fall.

The value of Solan Pepe’s memcoin (PEPE) has risen more than 35% in the week since it first topped cryptocurrency exchange Coinbase. Announced which will include altcoin perpetual contracts.

At the time of writing, PEPE was trading at $0.000006692 and was ranked as the fourth-highest gainer crypto asset in the last seven days, according to CoinMarketCap’s data.

The bears say goodbye.

An assessment of PEPE price performance on the one-day chart revealed a resurgence in bullish sentiment and a significant decline in bearish sentiment.

Signaling a change in market sentiment from bearish to bullish, the MACD PEPE line (blue) crossed its signal line (orange) during the intraday trading session on April 22.

This crossover often suggests that the asset’s market momentum is becoming more bullish. Market participants often interpret this as a buy signal to enter long positions and exit short positions in anticipation of further price increases.

However, it is important to note that while the MACD PEPE crossover signaled a change in market momentum from negative to positive, it remained below the zero line at the time of publication.

This indicates that while bullish pressure may have increased, some bearish elements remain in the market.

Confirming the growing bullish momentum, the Elder-Ray PEPE Index was positive at press time.

This indicator measures the power ratio of buyers and sellers in the market. When its value is positive, it means that bullish power is dominant in the market.

At the time of writing, the Elder-Ray PEPE index value was 0.0000014.

Additionally, PEPE’s directional motion index (DMI) readings showed that its positive directional index (green) exceeded its negative index (red) on April 22.

This crossing of a positive index into a negative one is also considered a bullish signal as it indicates that the market is in a stronger uptrend than a downtrend.

Why Caution May Be Necessary

In the currency derivatives market, open interest in futures has been in an upward trend since April 20th. According to The glass coin has since risen 62%. At the time of publication, open interest in PEPE futures was $63 million.