Blockchain analytics platform Santiment says that interest may be declining in the memecoin Pepe (PEPE) after its explosive run.
Santiment says that the Dogecoin (DOGE) and Shiba Inu (SHIB) rival will likely not reach its May 5th all-time high price again, but could see a smaller move to the upside in the near term after plummeting in value by 67%.
According to Santiment, its social dominance metric is closely mirroring PEPE’s price action. If the metric dips a few percentage points lower, it would indicate traders are moving on.
“[PEPE] is still making up about 5% of discussions compared to top 100 assets. And seeing it get down to the 1%-2% range would be a good sign that traders are beginning to stray away and look for pumps from other altcoins.”
Santiment says moves to the upside are still possible for PEPE and one indicator to look for is if large addresses holding at least 100 million PEPE become more active.
“Looking at the largest addresses with 100 million PEPE or more we see that they also began reversing course right on the May 5th top…
If you start seeing these lines moving up again, there is a much larger probability of PEPE going for its second round of pumping (though probably a more minor one).”
Santiment also says the 30-day market value to realized value (MVRV), which traders use to detect overbought or oversold conditions, appears to show PEPE moving into an “opportunity zone.”
“Just in the past 24 hours, the 30-day MVRV shows that traders are essentially back to break-even. If it gets into negative territory, that would begin to look like a juicy setup because traders will be in the red and in the ‘opportunity zone.’”
Another indication of a possible move to the upside is that trading volume is starting to pick up, according to Santiment.
“Trading and transaction volume looks about as expected with everything fading pretty significantly since the May 5th top. However, things have begun to rebound again with these metrics in the past 24 hours.”
Lastly, Santiment says if relatively dormant addresses start to become active, an upward price move could follow.
“The average amount of days in which PEPE has been sitting in the average wallet is about five days currently. On May 5th, this number actually went under two days. Typically, before a bull run or mini pump begins, it’s preceded by some dormant addresses starting to move.”
Pepe hit a low of $0.000000055142 on April 18 and an all-time high of $0.00000372, a gain of about 6,650%. Pepe is worth $0.00000122 at time of writing, down 24.1% in the past 24 hours.
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Featured Image: Shutterstock/WWWoronin/Natalia Siiatovskaia
