Pepe Claims $1 Billion Market Cap for Memecoin Season, But…
Financial Analyst
Posted:
- Although the price rose sharply, the pessimistic sentiment around PEPE also rose.
- Few indicators and metrics suggested that the bull rally might end.
PEPE recently shocked investors as it experienced an uptrend. The price increase in the last 24 hours allowed the memecoin to reclaim $1 billion in market capitalization.
Since the magnitude of the growth was significant, AskFX planned to take a look at the current state of PEPE to see if the trend would continue.
A look at PEPE’s bull rally
PEPE price surged in the last 24 hours, rising by more than 50%. However, after reaching this level, the meme coin experienced a slight price correction.
According to CoinMarketCapthe price of PEPE has increased by over 31% in the last 24 hours. At the time of writing, the meme coin was trading at $0.000002661, with a market cap of over $1.12 billion, making it the 74th largest cryptocurrency.
Thanks to the bull rally, the crypto community started talking about the memecoin, which was evident from the increase in its social volume.
However, it was surprising to see that despite the price uptrend, the bearish sentiment around the coin increased as its weighted sentiment dropped sharply on February 27th.
Source: Santiment
PEPE’s bullish trend may end soon
Aside from the weighted sentiment, some other metrics also looked quite bearish for the meme coin. For example, as the price of the coin rose, investors began selling their holdings.
The supply of memecoins on exchanges increased while the supply outside of exchanges decreased, indicating high selling pressure.
Whale activity around the coin remained high as the number of whale transactions increased. But whales also actively sold their holdings as the supply of top addresses decreased.
Increasing selling pressure could put an end to PEPE’s bull rally in the coming days. Additionally, the coin’s MVRV ratio was over 50% at press time; Such a high MVRV ratio often indicates a possible price correction.
Source: Santiment
Read PEPE’s Price Prediction 2024-25
To double check if a downtrend is imminent, AMBCryto took a look at the meme coin’s daily chart. We noticed that the price of Memecoin has touched the upper limit of the Bollinger Bands.
Its Relative Strength Index (RSI) was also in overbought territory. These two indicators suggested a possible increase in selling pressure that could push the price of PEPE lower.
Nonetheless, the MACD provided some hope as it showed a clear bullish upper hand in the market.
Source: TradingView
