Pepe’s Meteoric Rise: What’s on the Horizon for the Meme Coin?
According to blockchain analytics platform Santiment, there are signs of waning interest in Pepe (PEPE), a meme coin that experienced a significant surge in value.
Santiment suggests that PEPE is unlikely to reach its previous all-time high price recorded on May 5th. However, there is a possibility of a minor upward movement in the near future after a substantial 67% decrease in value.
Santiment’s analysis indicates that the social dominance metric of PEPE closely aligns with its price action. If this metric decreases further, it suggests that traders are shifting their attention elsewhere.
Currently, PEPE constitutes approximately 5% of discussions related to the top 100 assets. However, if this percentage drops to the 1%-2% range, it would indicate that traders are moving away and seeking opportunities in other alternative coins.
Santiment highlights that there is still potential for upward movements in PEPE. One indicator to observe is the activity of large addresses holding at least 100 million PEPE. If these addresses become more active, there is a higher probability of PEPE experiencing another round of price increases, albeit on a smaller scale.
Furthermore, Santiment notes that the market value to realized value (MVRV) ratio, a tool used by traders to identify overbought or oversold conditions, suggests that PEPE may be entering an “opportunity zone.”
In the past 24 hours, the 30-day MVRV indicates that traders have returned to a break-even point. If the MVRV turns negative, it presents an enticing setup as traders would be in a loss position, creating an opportunity for potential gains.
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Santiment also observes an increase in trading volume, signaling a resurgence in activity. Despite a significant decline since the peak on May 5th, trading and transaction volume have started to rebound in the past 24 hours.
Finally, Santiment suggests that an upward price movement may follow if previously inactive addresses become active. Currently, the average holding period for PEPE in an average wallet is approximately five days. However, on May 5th, this period dropped to less than two days. Typically, before a bull run or minor price surge, there is a trend of dormant addresses starting to show activity.
Pepe experienced a low of $0.000000055142 on April 18th and reached an all-time high of $0.00000372, marking a gain of around 6,650%. As of now, the value of Pepe stands at $0.0000018, reflecting a 24.1% decline in the past 24 hours.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
