PEPE increased by 25% in one day: Should traders take profits or buy more?

A week ago, Coinphoton reported that the famous memecoin Pepe (PEPE) is trading within a compression chart pattern. The descending wedge pattern formed since August has laid the groundwork for a strong rally as buying pressure gradually absorbs selling pressure.

The immediate positive CVD indicator signaled a warning to the bears, and PEPE recorded an impressive 25% increase in just one day, marking a promising start to January. This rally successfully broke through the downward structure on the 1-day timeframe convincingly.

Coinphoton also warned about the risk of a bearish divergence forming; however, the price only slightly corrected to the demand zone of $0.0000046. In the short term, the memecoin group has outperformed the entire cryptocurrency market, with the total market capitalization increasing by 8.87% in just 24 hours.

Will PEPE maintain this upward momentum? What are the next target levels?

Swing Trader: An Opportune Time to Open Long Positions

Recommending traders to open long positions while the weekly chart still shows downward pressure may raise some doubts. However, in reality, the daily and lower timeframes have shown a clear structural shift to an uptrend.

Source: TradingView On the other hand, the weekly chart still looks unfavorable: prices remain below the 20-week and 50-week moving averages, the MFI indicator indicates selling dominance, and OBV has not yet surpassed local peaks.

The downtrend was halted at the support zone of $0.000004 throughout the last six weeks of 2025 before bouncing back. This recovery could potentially push the price toward the next resistance levels at $0.00000747 and $0.00000950, representing respective increases of 24.9% and 58.4%.

Risk Assessment of the breakout failure scenario

The structural shift to an uptrend, along with PEPE easily surpassing the supply zone of $0.0000044-$0.0000049, are positive signs. With strong momentum and increased buying pressure, the likelihood of a deep reversal after a 20% rise is quite low.

Source: TradingView If Bitcoin (BTC) continues its upward momentum to $94.5k or higher, the prospects for PEPE to continue rising will be further strengthened.

Trader: Avoid FOMO!

Memecoin price surges often happen quickly, strongly, and with few significant corrections. Opening a long position now and holding could yield high profits, but it also involves considerable risk.

To minimize risk, traders can wait for a correction back to the imbalance zones at $0.0000054 or $0.0000046 before entering a position. However, be aware that the uptrend may continue without any correction.

Such a correction would provide traders with a better entry point with an optimal risk/reward ratio.

Ông Giáo