Is [PEPE]’s Unprecedented Journey Coming to an End? This is What the Metrics Suggest
The number of PEPE holders has increased considerably in recent days. Investors should be cautious as market indicators suggest a turnaround.
[PEPE] has once again sparked buzz in the market, especially in the memecoin niche. Since its inception a few weeks ago, it has generated enough hype to make the token a word on everyone’s lips. Messari posted a tweet on May 9, highlighting PEPE’s journey, which has amazed many over time:
“1/ Nothing brings people together quite like meme coins. @chasedevens breaks down the resurgence of speculative interest in meme coins thanks to the parabolic growth of @pepecoineth.”
PEPE, which was launched just over three weeks ago on April 14, exceeded 100,000 chain participations. Compared to the previous rise of other rapidly expanding Ethereum-based coins, Pepe’s journey was more remarkable. This was also evident when looking at the Santiment chart, which revealed a substantial increase in the number of starting PEPE.
On top of that, Messari’s tweet noted that the token was showing a similar growth pattern to the Shiba Inu [SHIB] but at a much higher rate in terms of median value per holder:
“4/ If we look at the average value per holder of @pepecoineth and @ShibainuCoin, as measured by the market cap value per holder, we see that $PEPE is displaying a similar growth pattern to $SHIB, but at a much faster pace.”
This is commendable, as it makes PEPE one of the top contenders among memecoins.
Unprecedented Increase: Will It Last?
Thanks to the hype the memecoin created, it was still trending at the #1 spot on CoinMarketCap at press time. The coin posted triple-digit growth in recent weeks. The PEPE price increased more than 85% in the last seven days. The memecoin was trading at $0.000001941 with a market capitalization of over $760 million.
Growth momentum has abated in recent days. The memecoin price alone increased more than 3% in the last 24 hours. The supply of memecoin on exchanges has seen an increase lately. This was accompanied by a decrease in supply outside of exchanges, which is a typical bearish sign.
On top of that, whale transactions increased while the crossing was taking place, suggesting that the bigwigs were selling off their assets at a profit.
PEPE Enthusiasts Should Be Cautious
A look at the rest of the metrics was concerning as well. PEPE’s network growth and daily active addresses declined. This indicated less activity and a decrease in the number of new addresses created daily.
The volume of the memecoin also decreased, indicating a lower willingness of investors to trade the token. Furthermore, its week-long price volatility dipped as well, lessening the chances of a sudden uptrend.
According to the exponential moving average (EMA) tape, the bears were tightening their belts as the distance between the 20- and 55-day EMA narrowed.
The Chaikin Money Flow Index (MFI) and Chaikin Money Flow (CMF) posted declines, raising the chances of a price decline in the coming days.
By Audy Castaneda