Highlights:
- Pepe Coin price dropped 55% from its all-time high but is showing potential for recovery.
- Key indicators like MVRV and futures open interest point to a possible rebound.
- Whale accumulation suggests growing interest in the coin amid volatile market trends.
Pepe Coin’s Dramatic Crash and Possible Recovery
Pepe Coin, a prominent meme-based cryptocurrency, has faced a steep 55% price decline since November 2024. This crash aligns with broader trends in the altcoin market, particularly among meme coins like Shiba Inu and Bonk. However, despite the downtrend, on-chain indicators signal that the coin might be gearing up for a bullish reversal.
Two critical factors support this optimistic outlook:
- Market Value to Realized Value (MVRV) Indicator: Currently in the buy zone.
- Whale Accumulation: Large investors have purchased 30 trillion PEPE tokens during the recent dip.
Futures Open Interest Remains Strong Amid Decline
Data from Coinglass highlights a divergence between Pepe Coin’s price and its futures open interest (OI). While the price dropped, OI has surged to over $400 million, significantly higher than December 2023’s $140 million.
Why Futures Open Interest Matters:
- Definition: OI reflects the total outstanding call and put contracts that remain unsettled.
- Significance: Higher OI often signals growing investor confidence, especially during a price drop.
Additionally, spot trading volumes for Pepe Coin remained robust, with $1.07 billion traded on Tuesday—outpacing rival meme coins like Shiba Inu and Floki. This elevated trading activity suggests heightened investor attention and possible market volatility ahead.
MVRV Flashes Buy Signal: A Rebound on the Horizon?
The 30-day MVRV indicator has entered the buy zone (-15% to -25%), currently hovering at -23%. Historically, this level signals investor losses, often leading to capitulation by short-term holders and increased buying activity by long-term investors.
Also read: Crypto User Guide for BEGINNERS! What is Slippage and How to Avoid it in Cryptocurrency Trading?
Past Performance of MVRV Buy Signals:
- August 2024: Price surged by 72%.
- November 2024: Price increased by 71%.
- December 2024: Price climbed by 51%.
If this trend holds, Pepe Coin could be primed for a similar price spike in the coming weeks.
Key Levels to Watch: Profit and Risk Zones
Critical Support Levels:
- $0.00000895: The bottom of the trading range and a key trendline since April 2024.
Potential Resistance Levels:
- $0.00001722: March 2024 high; surpassing this could indicate a 122% rally to the all-time high of $0.00002825.
Bearish Scenario:
A drop below $0.00000895 would invalidate the bullish trend, signaling further bearish momentum tied to a head-and-shoulders pattern.
Also read: Crypto Made Easy: Turn $100 into $1,000—A Beginner’s Guide!
The Bigger Picture
Pepe Coin’s current trajectory suggests a critical juncture for investors. With whale activity, robust open interest, and MVRV buy signals, the coin appears poised for a rebound. However, caution is warranted as market volatility remains high. Investors should monitor the key price levels closely as the frog-themed crypto prepares for its next leap.
