Pepe Coin’s price remains under pressure this week as Bitcoin’s fall below $95,000 triggered a broader meme coin retreat. The resulting market crash has wiped out nearly $3 billion in value, prompting some Pepe holders to sell for profits. Despite the bearish sentiment, on-chain metrics and technical indicators suggest a potential rebound for Pepe Coin could be on the horizon.
On-Chain Metrics Indicate Stability
On-chain data reveals promising trends for Pepe Coin. Santiment reports a sharp decline in the token’s supply on exchanges, dropping from 218 trillion tokens a few months ago to 147 trillion. This trend implies that many holders, including whales, are opting to retain their coins in wallets rather than selling on exchanges.
Additionally, data from IntoTheBlock highlights muted large transactions, with only 354 recorded on Thursday compared to over 1,600 in December. This consistency in holding patterns among major investors suggests a belief in the coin’s recovery potential.
MVRV Indicator Hints at Undervaluation
The market value to realized value (MVRV) ratio provides further insight into Pepe Coin’s position. All MVRV metrics—30-day, 7-day, and 365-day—are currently under pressure, signaling undervaluation. Analysts consider this an opportunity for long-term investors to accumulate the asset at a bargain.
Meanwhile, the TD Sequential indicator has flashed green, marking a potential bullish reversal. Historically, this signal has preceded notable price movements, such as the 20% decline following its red flash on January 4.
Technical Analysis: Key Levels to Watch
Pepe Coin‘s price has dropped to a critical support level of $0.00001716, aligning with the 100-day Exponential Moving Average and the upper side of a cup-and-handle pattern. This alignment hints at a possible continuation rally that could see prices test the all-time high of $0.00002830, representing a 65% upside.
However, caution is warranted. The potential formation of a head-and-shoulders pattern suggests risk for further downside if prices dip below the 100-day moving average.
Also Read: PEPE Coin Whale Sell-Off Triggers Market Uncertainty Amid Bitcoin Volatility
For now, Pepe Coin’s rebound hinges on a delicate balance between technical resilience and broader market trends.
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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