- PEPE’s recent price action reveals intriguing insights about its future trajectory.
- An increase in active addresses has driven a significant price surge.
- Despite a decrease in circulation, many old coins have remained inactive, suggesting another potential rise.
PEPE’s recent price action, driven by an increase in active addresses and a decrease in circulation, suggests promising future moves for the memecoin.
Price Correlation with Network Activity
According to on-chain data from Santiment, the number of active addresses transacting on PEPE’s network increased from 2669 on May 1st to 4470 at press time. This metric, which often does not correlate with price in the broader crypto market, shows a strong correlation with PEPE’s price. If the number of active addresses continues to rise, PEPE’s price may follow suit. Conversely, a decline in active addresses could slow the memecoin’s upward trajectory.
Social Dominance and Potential Price Increase
As a result of the price increase, PEPE’s Social Dominance, a metric showing the rate of discussions about a project compared to others in the top 100, also jumped. This indicates that the market is paying more attention to PEPE than other memecoins. However, an extremely high Social Dominance could negatively impact the price. For instance, when Social Dominance hit 2.21% on March 4th, the token reversed its upswing. A similar situation occurred on April 1st. Currently, Social Dominance is at a relatively healthy level, suggesting that PEPE’s price could hit $0.00001 before any retracement appears.
Decrease in Circulation and Dormant Coins
Meanwhile, the one-day circulation of PEPE fell from 11.50 trillion to 3.97 trillion. This decrease in circulation could help PEPE sustain its upward move by reducing selling pressure, provided buying momentum increases. Additionally, the 90-day dormant circulation decreased to 59.54 billion, indicating that old holders of the token are refraining from moving their assets, suggesting a potential upcoming rally for PEPE.
Conclusion
In conclusion, PEPE’s recent price action, driven by an increase in active addresses and a decrease in circulation, suggests promising future moves for the memecoin. If these trends continue, PEPE could potentially reach new highs in the near future.
