CoinBasecamp

Crypto News & Updates

    • PEPE
    Latest News Memecoins PEPE

    Pepe Coin Price Rebound? Key Signals After a 55% Crash

    Posted on

    Highlights:

    • Pepe Coin price dropped 55% from its all-time high but is showing potential for recovery.
    • Key indicators like MVRV and futures open interest point to a possible rebound.
    • Whale accumulation suggests growing interest in the coin amid volatile market trends.

    Pepe Coin’s Dramatic Crash and Possible Recovery

    Pepe Coin, a prominent meme-based cryptocurrency, has faced a steep 55% price decline since November 2024. This crash aligns with broader trends in the altcoin market, particularly among meme coins like Shiba Inu and Bonk. However, despite the downtrend, on-chain indicators signal that the coin might be gearing up for a bullish reversal.

    Two critical factors support this optimistic outlook:

    1. Market Value to Realized Value (MVRV) Indicator: Currently in the buy zone.
    2. Whale Accumulation: Large investors have purchased 30 trillion PEPE tokens during the recent dip.

    Futures Open Interest Remains Strong Amid Decline

    Data from Coinglass highlights a divergence between Pepe Coin’s price and its futures open interest (OI). While the price dropped, OI has surged to over $400 million, significantly higher than December 2023’s $140 million.

    Why Futures Open Interest Matters:

    • Definition: OI reflects the total outstanding call and put contracts that remain unsettled.
    • Significance: Higher OI often signals growing investor confidence, especially during a price drop.

    Additionally, spot trading volumes for Pepe Coin remained robust, with $1.07 billion traded on Tuesday—outpacing rival meme coins like Shiba Inu and Floki. This elevated trading activity suggests heightened investor attention and possible market volatility ahead.

    MVRV Flashes Buy Signal: A Rebound on the Horizon?

    The 30-day MVRV indicator has entered the buy zone (-15% to -25%), currently hovering at -23%. Historically, this level signals investor losses, often leading to capitulation by short-term holders and increased buying activity by long-term investors.

    Also read: Crypto User Guide for BEGINNERS! What is Slippage and How to Avoid it in Cryptocurrency Trading?

    Past Performance of MVRV Buy Signals:

    • August 2024: Price surged by 72%.
    • November 2024: Price increased by 71%.
    • December 2024: Price climbed by 51%.

    If this trend holds, Pepe Coin could be primed for a similar price spike in the coming weeks.

    Key Levels to Watch: Profit and Risk Zones

    Critical Support Levels:

    • $0.00000895: The bottom of the trading range and a key trendline since April 2024.

    Potential Resistance Levels:

    • $0.00001722: March 2024 high; surpassing this could indicate a 122% rally to the all-time high of $0.00002825.

    Bearish Scenario:

    A drop below $0.00000895 would invalidate the bullish trend, signaling further bearish momentum tied to a head-and-shoulders pattern.

    Also read: Crypto Made Easy: Turn $100 into $1,000—A Beginner’s Guide!

    The Bigger Picture

    Pepe Coin’s current trajectory suggests a critical juncture for investors. With whale activity, robust open interest, and MVRV buy signals, the coin appears poised for a rebound. However, caution is warranted as market volatility remains high. Investors should monitor the key price levels closely as the frog-themed crypto prepares for its next leap.

    Tagged:

    You Might Also Like

    Latest News