logo
Back to News
Pepe Coin Price Rebound?

Pepe Coin Price Rebound?

Cryptocurrency Market Analysis

Pepe Coin: A Potential Rebound After 55% Crash?

Pepe coin's price has significantly declined, experiencing a 55% drop since November 2024. This downturn mirrored the broader altcoin market, particularly impacting meme coins like PEPE and Bonk. However, intriguing on-chain metrics, including the MVRV indicator and futures open interest, hint at a possible price recovery.

Whale Accumulation and Market Interest

Adding to the bullish sentiment is the recent accumulation of PEPE tokens by whales, who have reportedly purchased 30 trillion PEPE tokens. This significant buying spree could signal an upcoming bullish reversal. Furthermore, high trading volumes indicate sustained market interest in PEPE, even amidst the price drop. Pepe had a daily volume of $1.07 billion on Tuesday, surpassing many popular meme coins.

Open Interest Spikes Despite Price Drop

Data from Coinglass reveals a divergence between Pepe's price and its futures open interest (OI). The daily OI remains above $400 million, a significant increase from $140 million in December 2024. This sustained high OI, representing outstanding unsettled call and put contracts, is generally considered a bullish sign in the cryptocurrency market.

Pepe Open Interest

MVRV Indicator Flashes Buy Signal

The 30-day Market Value to Realized Value (MVRV) indicator has entered the buy zone (-15% to -25%), currently hovering around -23%. This suggests that investors who bought PEPE in the past month are experiencing an average loss of 23%. Historically, this range has marked capitulation by short-term holders and buying opportunities for long-term investors, leading to price increases of 72%, 71%, and 51% in August, November, and December 2024 respectively.

Pepe Coin MVRV indicator

Price Action and Key Targets

Pepe's price has fallen below the $0.00001722 level (March 2024 high), forming a potential head and shoulders pattern. The Relative Strength Index (RSI) is nearing the oversold level of 30. A potential support level exists at $0.00000895, coinciding with an ascending trendline.

Pepe coin price

A rebound above $0.00001722 would confirm the bullish outlook, potentially leading to a price increase towards the all-time high of $0.00002825. However, a drop below $0.00000895 would invalidate this prediction.

Frequently Asked Questions (FAQs)

  • What are the key indicators suggesting a potential Pepe rebound? Pepe has reached a key support level, maintains steady futures market open interest, and shows a buy signal on the MVRV indicator.
  • Why did the Pepe price crash? The crash is likely due to profit-taking and broader pressure on the crypto market.
  • What are the potential price targets if a rebound occurs? A rebound could potentially push the price back towards the all-time high of $0.00002825.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Conduct thorough research before investing in cryptocurrencies. Codeum is not liable for any financial losses.

Share this article