Popular meme coin PEPE is at a critical juncture in the ever-volatile cryptocurrency market. Known for its wild price swings, PEPE’s recent performance has analysts and investors on the edge of their seats. With mixed signals from the broader market, everyone’s watching its next move.
“Bounce or Die”
Respected crypto analyst Yoddha recently conducted a deep dive into the PEPE/USDT trading pair on Binance. His analysis paints a picture of a make-or-break moment for PEPE. Yoddha emphasizes that PEPE must hold its support levels to avoid a significant price drop, describing the situation as “bounce or die.”
Yoddha’s analysis reveals a potentially bullish indicator – a well-defined bull flag pattern. This pattern emerged after PEPE’s sharp rise from late 2023 to early 2024, followed by a consolidation period within a channel. The price then broke out in March, offering hope for a continued upward trend.
Crucial Support Levels
Currently, PEPE trades around $0.00001112 USDT, hovering near critical support levels. If these levels hold, PEPE could see a bounce back, potentially revisiting and even surpassing its recent highs. However, a failure to hold these supports at $0.00000800 and $0.00000550 USDT could trigger a decline.
Mixed Signals and Growing Adoption
Over the past month, PEPE has displayed a lack of clear direction, experiencing short-term fluctuations. Data from IntoTheBlock reflects this indecisiveness, with the PEPE network value-to-transaction (NVT) ratio sitting at 56.25.
Transaction volume has also been lackluster, dipping to $56.23 million on June 29th before recovering slightly to $81.29 million recently. This low volume suggests a period of exhaustion for both buyers and sellers. The number of large transactions (over $10,000) has also dropped by 38% in the last month.
Despite the lull, PEPE’s adoption rate has surged, reaching a one-year high of 58.49% on Monday. Daily active addresses have also seen a significant increase of over 105% in the past week, hinting at growing interest and potential for a rally.
Undervaluation and Bullish Bets
The market value to realized value (MVRV) ratio currently sits at -9%, indicating that recent buyers have experienced average losses. An MVRV ratio below one is often seen as a potential buy signal, suggesting undervaluation.
Also Read: Pepe The Frog Coin: 10,000 New Holders In June, Can They Rescue The Price?
Adding to the intrigue, a recent whale movement saw 1.1 trillion PEPE (approximately $14.7 million) transferred from Binance to an unknown wallet, hinting at potential bullish sentiment. Prominent crypto analyst Changelly even forecasts a price of $0.00001582 by July 10th, 2024, representing a 40% increase from current levels.
Will PEPE bounce back and solidify its position as a top meme coin, or will it succumb to the volatile market forces? Only time will tell.
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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