Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) witnessed slight gains on Monday, sparking renewed interest among traders. These three popular meme coins have experienced a lull in whale activity, yet they remain undervalued, presenting potential entry points for investors seeking opportunities in the volatile crypto market.
On-Chain Metrics Signal Potential Gains
According to data from crypto intelligence platform Santiment, the on-chain activity for DOGE, SHIB, and PEPE has shown promising signs. Active addresses for these meme coins have increased since August 31, indicating a rise in interest from market participants. DOGE and PEPE, in particular, saw a noticeable uptick in active addresses during the first two days of September, while SHIB’s activity remained stable.
This surge in active addresses suggests that despite the recent slowdown in whale transactions, retail traders and smaller investors are beginning to take notice. The increased activity among asset holders could signal the beginning of a broader market move, especially as these coins remain undervalued.
One key metric supporting the undervalued status of DOGE, SHIB, and PEPE is the Market Value to Realized Value (MVRV) ratio. MVRV helps determine whether an asset is overvalued or undervalued within a specific timeframe. As of now, DOGE, SHIB, and PEPE have MVRV ratios of -5.859%, -3.263%, and -7.644%, respectively. These negative percentages indicate that the current market prices for these coins are lower than their realized values, suggesting potential upside.
For traders looking to capitalize on this undervaluation, DOGE, SHIB, and PEPE could represent attractive investment opportunities. Over the past week, DOGE and SHIB have seen their prices drop nearly 12%, while PEPE has experienced a more significant decline of 20%. This dip could offer a favorable entry point for those anticipating a rebound.
Whale Activity Declines, But Retail Interest Grows
While the recent gains in DOGE, SHIB, and PEPE prices are encouraging, it’s important to note the decline in whale activity since August 1. Whale transactions—those valued at $100,000 or more—serve as a key indicator of large-volume transfers and institutional interest. Santiment’s data reveals a noticeable drop in these transactions over the past month, suggesting that large wallet holders are taking a step back.
However, this reduction in whale activity does not necessarily spell doom for these meme coins. The rise in active addresses and the continued undervaluation of DOGE, SHIB, and PEPE could attract a new wave of retail investors, leading to potential price appreciation in the near term.
Also Read: Dogecoin (DOGE) Price Drops 6% As Whale Activity Plummets By 80%—Will It Break The $0.0841 Support?
Current Price Snapshot
As of Monday, Dogecoin is trading at $0.09609, Shiba Inu at $0.00001336, and Pepe at $0.00000730. The slight price increases of 1.18%, 1.52%, and 2.52% for DOGE, SHIB, and PEPE, respectively, reflect a market that is cautiously optimistic despite the overall slowdown in whale activity.
In conclusion, while whale activity has declined, the rise in retail interest and the undervaluation of these meme coins present a compelling case for traders considering an entry point. With DOGE, SHIB, and PEPE showing signs of recovery, the coming weeks could be pivotal for these meme coins.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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