Pepe Coin price remains under pressure this week as Bitcoin falls below $95,000 and most meme coins retreat. This crash has erased almost $3 billion in value, pushing some holders to sell and take profits. Still, on-chain metrics like falling supply on exchanges and some technicals mean that the Pepe price may go vertical soon.
Pepe Coin Price On-Chain Metrics Signal A Rebound Is Possible
On-chain metrics, or numbers recorded on the Pepe network, signal that the coin may be primed for a rebound. One of the most popular data is a coin’s supply on exchanges, which provides information on whether traders are buying or selling it.
In Pepe’s case, Santiment data shows that the supply on exchanges has continued falling in the past few days. There were 147 trillion Pepe tokens down from over 218 trillion a few months ago. That number means that many holders, especially whales, have not moved their Pepe coins from their wallets to exchanges.
Pepe Coin Balances on Exchanges
In line with this, more data by IntoTheBlock shows that the number of large transactions has remained muted in the past few weeks. The figure stood at 354 transactions on Thursday, down from over 1,600 in December last year. This number means that many large investors continue to hold their positions, hoping that it will bounce back.
Pepe Large Transactions
Pepe MVRV Indicator Points To Undervaluation
Meanwhile, more data shows that Pepe coin is undervalued. The market value to relative value (MVRV) indicator is one of the most popular tools to assess whether a coin is cheap or overvalued. It finds the z-score of the market value and the relative value ratio, with a low figure pointing to undervaluation.
The 30-day, 7-day, and 365-day MVRV ratios have remained under pressure as the coin pulled back. That is a sign that it has become a bargain for now.
PEPE Price MVRV Indicator
Another indicator known as TD Sequential has also flashed green. According to Ali Martinez, the indicator flashed red on January 4 leading to a 20% crash. It has now flashed green, pointing to a potential rebound.
TD Sequential Indicator
Pepe Coin Price Analysis: Can It Rebound?
The daily chart shows that the value of Pepe has dropped to a crucial support level of $0.00001716. This is a notable level since it coincides with the 100-day Exponential Moving Average and the upper side of the cup and handle pattern. That could be a sign that it has formed a break and retest pattern, a popular continuation sign.
If this is correct, it means that Pepe Coin price may bounce back and retest the all-time high of $0.00002830, up by 65% from the current level.
Pepe Coin Price
The risk, however, is that the coin may be forming a head and shoulders pattern, a high-risk reversal sign. Such a pattern may lead to more downside, especially if the coin drops below the 100-day moving average.
The post Pepe Coin Price Could Rise 2X Soon 2 On-chain Metrics Indicate appeared first on CoinGape.
