- Meme Shiba Inu and PEPE coins saw double-digit gains in the last 24 hours.
- SHIB could bounce up to $0.0000299 if it validates a rounding lower move.
- PEPE could rally towards its all-time high of $0.0000280 after overcoming key trendline resistance.
Major coins Shiba Inu (SHIB) and PEPE rose above 10% on Friday as the crypto market looked strong heading into the weekend. A massive increase in open interest for both tokens indicates growing investor optimism.
PEPE and SHIB mark gains following rise in open interest
Meme coins SHIB and PEPE are among the biggest gainers in the crypto market on Friday, each surging above 10% in the past 24 hours.
SHIB saw a 10% gain over the past week, with its trading volume reaching $1 billion for the first time since December 22. The increase in trading volume indicates increasing investor activity on centralized exchanges.
Data from Coinglass reveals that SHIB saw an increase in net FX inflows, which reached almost $20 million in the last 24 hours. The increase in capital flows suggests that investors may be looking to take profits with the recent market recovery.
Net SHIB exchange flows. Source: Coinglass
However, SHIB open interest remains at high levels, increasing from 3 trillion SHIB on January 1 to over 22 trillion SHIB at press time, an increase of over 600%. This indicates increased optimism and the potential for increased volatility.
On the daily chart, SHIB is attempting to validate a rounded bottom pattern but faces resistance at the $0.0000249 level. This resistance is reinforced by the 50-day simple moving average (SMA).
High volume above $0.0000249 and its establishment as support level could see SHIB rebound to $0.0000299 – just below the psychological level of $0.0000300. The target is obtained by measuring the height of the pattern and projecting it upwards from the potential breakout point.
SHIB/USDT daily chart
A daily candlestick below $0.0000200 will invalidate the thesis.
PEPE could attack its historic resistance at $0.0000280
PEPE saw increased buying activity as it recorded net outflows of over $40 million on major exchanges over the past seven days.
Its open positions also saw an uptick during the week, hitting a one-year high of 28.99 trillion PEPE on Tuesday.
Following the rise in OI, PEPE broke above a descending trendline resistance extending from December 9 and seeks to overcome the 50-day simple moving average (SMA) hurdle.
If it holds this trendline as support level and breaks above the SMA hurdle, it could break through the resistance at $0.0000218 and move up towards its all-time high of $0.0000280.
PEPE/USDT daily chart
A daily candlestick closing below $0.0000166 will invalidate the thesis and send PEPE towards the $0.0000120 level.
Meanwhile, several other meme coins have rallied over the past 24 hours, including DOGE, BONK, and FLOKI, up almost 10%.
