- The recent surge in selling pressure on PEPE has drawn considerable attention.
- The memecoin’s Fear and Greed Index indicated an ‘extreme greed’ scenario at the latest assessment.
- PEPE, like many other cryptocurrencies, has experienced significant price corrections amid a bearish market trend.
Insights into PEPE’s current market dynamics amidst a bearish crypto trend and potential indicators of future movements.
PEPE Bears Dominate as Price Takes a Hit
Over the past week, PEPE has undergone a substantial price drop, experiencing a double-digit decline. Specifically, the memecoin’s value has fallen by over 23% during this period, with a 7% decrease occurring in the past 24 hours alone. At present, PEPE is valued at $0.000009345, possessing a market capitalization exceeding $3.93 billion.
Despite this downturn, there has been an interesting development among PEPE’s long-term holders—those retaining the token for more than a year have increased significantly over recent months. Data from IntoTheBlock reveals that these long-term holders now comprise more than 27% of the total holder base.
Investor Response Amid Market Volatility
Analyzing investor behavior, it appears that the majority have opted to sell during the dip. Santiment’s data indicates a rise in PEPE’s supply on exchanges and a corresponding decrease outside exchanges, confirming an increase in exchange inflows. However, a contrasting trend was observed among whales, who have been accumulating PEPE, as evidenced by the growing supply held by top addresses.
Prospects of a Reversal in PEPE’s Price Trend
Further examination of various datasets points to a prevailing bearish sentiment in the market. The memecoin’s weighted sentiment has dropped, reinforcing the dominance of negative outlooks. Additionally, the Market Value to Realized Value (MVRV) ratio has seen a decrease, and the Network Value to Transactions (NVT) ratio has risen sharply, indicating that PEPE may be overvalued at this stage.
Interestingly, PEPE’s Fear and Greed Index provides a glimmer of optimism. Currently positioned at 22%, the index suggests ‘extreme fear,’ a level often associated with potential price hikes.
Technical Indicators Signal Caution
Upon reviewing PEPE’s daily charts, a clear bearish trend emerges. The MACD (Moving Average Convergence Divergence) indicator shows a significant bearish advantage, while the Chaikin Money Flow (CMF) has taken a downtick, suggesting sustained downward pressure on the price. Contrarily, the Money Flow Index (MFI) and Relative Strength Index (RSI) have exhibited sideways movement, indicating a possible deceleration in bearish momentum.
Conclusion
Reflecting on the recent market activities, PEPE’s significant price correction amid a broader bearish crypto environment has been accompanied by increased long-term holding and contrasting investor behavior. While technical indicators predominantly hint at continued bearishness, certain metrics like the Fear and Greed Index offer hope for a potential price recovery. Investors should closely watch these developments to gauge future market directions.
