The number of PEPE holders has increased considerably in recent days. Investors should be cautious as market indicators suggest a turnaround.
[PEPE] has once again sparked buzz in the market, especially in the memecoin niche. Since its inception a few weeks ago, it has generated enough hype to make the token a word on everyone’s lips. Messari posted a tweet on May 9, highlighting PEPE’s journey, which has amazed many over time:
“1/ Nothing brings people together quite like meme coins. @chasedevens breaks down the resurgence of speculative interest in meme coins thanks to the parabolic growth of @pepecoineth.”
PEPE, which was launched just over three weeks ago on April 14, exceeded 100,000 chain participations. Compared to the previous rise of other rapidly expanding Ethereum-based coins, Pepe’s journey was more remarkable. This was also evident when looking at the Santiment chart, which revealed a substantial increase in the number of starting PEPE.
On top of that, Messari’s tweet noted that the token was showing a similar growth pattern to the Shiba Inu [SHIB] but at a much higher rate in terms of median value per holder:
“4/ If we look at the average value per holder of @pepecoineth and @ShibainuCoin, as measured by the market cap value per holder, we see that $PEPE is displaying a similar growth pattern to $SHIB, but at a much faster pace.”
This is commendable, as it makes PEPE one of the top contenders among memecoins.
Unprecedented Increase: Will It Last?
Thanks to the hype the memecoin created, it was still trending at the #1 spot on CoinMarketCap at press time. The coin posted triple-digit growth in recent weeks. The PEPE price increased more than 85% in the last seven days. The memecoin was trading at $0.000001941 with a market capitalization of over $760 million.
Growth momentum has abated in recent days. The memecoin price alone increased more than 3% in the last 24 hours. The supply of memecoin on exchanges has seen an increase lately. This was accompanied by a decrease in supply outside of exchanges, which is a typical bearish sign.
On top of that, whale transactions increased while the crossing was taking place, suggesting that the bigwigs were selling off their assets at a profit.
PEPE Enthusiasts Should Be Cautious
A look at the rest of the metrics was concerning as well. PEPE’s network growth and daily active addresses declined. This indicated less activity and a decrease in the number of new addresses created daily.
The volume of the memecoin also decreased, indicating a lower willingness of investors to trade the token. Furthermore, its week-long price volatility dipped as well, lessening the chances of a sudden uptrend.
According to the exponential moving average (EMA) tape, the bears were tightening their belts as the distance between the 20- and 55-day EMA narrowed.
The Chaikin Money Flow Index (MFI) and Chaikin Money Flow (CMF) posted declines, raising the chances of a price decline in the coming days.
By Audy Castaneda
