$PEPE achieved one of the most significant gains compared to other coins over the past week.

Data from CoinMarketCap shows that PEPE is one of the top-performing coins this week. It has recorded a gain of over 25% in the past seven days, making it the 14th largest gainer.

This upward trend has helped it become the second largest gainer among memecoins.

As traders turn their attention to its impressive rally, examining price levels, daily active addresses, and other indicators can provide insight into what lies ahead.

Analyzing the bullish case for PEPE
The price of PEPE has shown significant strength recently, rising from $0.00000090 to around $0.00000112 at press time.

This is an important support level around $0.00000100, where the price has found footing before rallying.

With PEPE trading above both the 50-day and 200-day moving averages at approximately $0.00000096 and $0.00000099, respectively, these levels are important indicators of bullish momentum.

The MACD (Moving Average Convergence Divergence) indicator shows a positive crossover, signaling continued bullish momentum, while the OBV (On-Balance Volume) line has been trending upward, reflecting strong buying interest.

If it maintains support above $0.00000100 and keeps the MACD in bullish territory, it may continue to attract buyers targeting the next resistance level around $0.00000115.

Bearish signals are also emerging.
Although PEPE's recent rally is promising, caution is advised as the price approaches potential resistance levels.

Notably, the RSI (Relative Strength Index) is nearing overbought territory, suggesting a correction may be imminent.

History shows that when its RSI reaches these levels, a correction to support around $0.00000100 often follows as traders take profits.

An important resistance level for PEPE is at $0.00000115, where the price has previously faced selling pressure.

If PEPE struggles to break through this resistance, it could signal a short-term top, potentially leading to consolidation or a retest of lower support levels.

For traders, the $0.00000100 support level is noteworthy, as a break below this level could indicate a trend reversal.

Daily active addresses
The daily active addresses of PEPE have shown a significant increase, with a surge in activity coinciding with the recent price rally.

The number of daily active addresses has risen from around 3,500 to nearly 5,000 in recent days, indicating renewed interest in this token.

History shows that a spike in the number of daily active addresses for PEPE has supported price rallies, indicating genuine interest rather than speculative hype.

If PEPE can maintain this high level of activity, it may continue to build momentum towards breaking the resistance at $0.00000115.

However, if the number of daily active addresses declines significantly, it could signal a waning interest, potentially leading to a correction to the $0.00000100 support level or even lower.

A sustained increase in the number of addresses could strengthen the case for further gains, but a decline could signal a return to previous price levels.

The correlation of PEPE with Bitcoin
The Correlation Coefficient here measures the strength of the relationship between PEPE and $BTC, expressed in values from -1 to +1.

A value close to +1 indicates that the price of PEPE tends to move in the same direction as Bitcoin, while a value close to -1 indicates an inverse relationship.

Currently, this coefficient reads -0.62, meaning PEPE has a moderate inverse correlation with BTC. This implies that when Bitcoin rises, PEPE tends to fall, and vice versa.

However, this inverse correlation is not strong, suggesting that despite some opposing movements, it can still exhibit independent price behavior.