Which Memecoin Price Should You Watch
Journalist
- Technical analysis revealed that the price movements of PEPE and FLOKI were similar in March.
- The NVT metric highlighted a potentially crucial difference between two tokens.
Pepe [PEPE] FLOKI [FLOKI] Earlier this month they reversed their gains. PEPE has lost 12.6% in the last 48 hours. FLOKI is down 15.2% since March 21st. AskFX had previously reported that social sentiment behind PEPE was also weakening despite its strong rise earlier in the week.
Bitcoin [BTC] Market participants were unable or unwilling to implement a trend reversal. As we approach the halving, this decline could continue. This leaves altcoins like meme coins vulnerable to downward pressure.
Which meme coin is more bullish in comparison?
AskFX combined the NVT with Santiment’s mean coin age to determine whether the meme coins were overvalued. This could help determine whether the network has reaccumulated after the pullback.
The Network Value to Transaction (NVT) metric allows the user to compare the value of the network with its valuation. Calculated by dividing the daily market capitalization by the daily transaction volume.
The average age of the tokens on the chain is called the mean mintage. If the trend is up, it indicates increased accumulation by holders.
In the last ten days, the average coin age of both meme coins started increasing. The coin age had declined dramatically even as prices rose. This was a sign of profit-taking. Combining the NVT with the NVT provided further insights.
The NVT for PEPE shot up dramatically on March 22nd, while the average coin age tended to be higher, but still very low. The network was overvalued and there were more traders and short-term holders.
The NVT for FLOKI, on the other hand, was below its peak at the end of January. Although average coinage increased, it was still relatively low.
The FLOKI market is therefore more undervalued and has greater upside potential.
Fibonacci levels are used to represent areas of interest
Source: PEPE/USDT at TradingView
PEPE’s 12-hour chart showed that price tested the key support level of had $0.00000621. A day later, the price recovered by almost 40%, showing that the bulls were still going strong.
The market structure was bullish for this period. The RSI, which was at 49.6 at the time, was an early sign that momentum was shifting to sellers.
TradingView: Source: FLOKI/USDT
FLOKI bulls have stopped last week’s retracement around $0.000176 – the 61.8% level. The 12-hour chart is also bullish. However, the RSI was still at 52.17, indicating a neutral to bearish move.
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The OBV for both meme coins has remained in a certain range for the past ten days. Overall, FLOKI recorded a smaller decline. On-chain metrics showed that it may be undervalued.
However, the meme coin market is highly unpredictable.
