Assessing Pepe’s potential for another price hike
- PEPE showed growth potential but this depends on Fibonacci level entry opportunity.
- On-chain operation was dismaying despite high volatility and sellers’ control.
Pseudonymous crypto analyst Altcoin Sherpa opined that Pepe [PEPE] might soon ride to a lower high. The cryptocurrency which became recently popular has been a subject of much speculation and interest despite its retracement over the last few weeks.
Read Pepe’s [PEPE] Price Prediction 2023-2024
Is 0.5 fib level the catalyst?
According to Sherpa, who also analyzes price actions on YouTube, PEPE’s move to the 0.50 Fibonacci level could be key in triggering the prediction.
By employing the 0.5 Fib retracement level, the analyst noted that the meme could hit $0.000002349 while employing a lower price than the 0.618 fib level as an entry point.
If achieved, this means that PEPE would have doubled its value from the price at press time. While the broader cryptocurrency landscape remains inherently volatile, PEPE’s price has been decreasing.
According to CoinMarketCap, the token lost 45.38% in the last 30 days. And the performance in the last 24 hours was not any better.
Despite the underwhelming state of its value, PEPE’s social volume remained considerably high over the last week. However, the metric hit its lowest point at press time. This has been the case since 8 June.
PEPE: A bleak on-chain situation
Built on top of social data, the social volume takes into account search volume related to an asset. Therefore, the decrease in the last two days means that the hunt for the meme has reduced.
In terms of network growth, Santiment showed that the metric also decreased. Typically, network growth serves as a measure of tracking the number of new addresses adopting a token.
At 287 on 10 June, the decline implied that PEPE’s catalyst of traction had lost its midas touch. Moreso, the increase in the total number of holders has only been mild since the massive increase up until 13 May.
Between the aforementioned date and the time of writing, there has only been an additional 7,000 holders. This suggests a minimal positive expectation in the short-term price.
The 30-day active addresses have also fallen massively to 89,900 from over 199,000. This infers that there has been a decrease in token exchange among wallets.
High volatility and loitering bears
From a technical perspective, the four-hour chart showed that PEPE’s volatility was extreme based on the Bollinger Bands (BB). Also, the price at 0.00000092 touched the lower band.
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When this happens, it means that the token is oversold, and could reverse its direction. Thus, PEPE could have a chance at an increase based on Sherpa’s projection.
However, the projected price increase would need to fight off sellers’ dominance indicated by the Directional Movement Index (DMI). At press time, the -DMI (red) was 46.53 while the +DMI (green) was 15.35.
In addition, the Average Directional Index (ADX) neared a value of 25. If this happens, the ADX (yellow) could further increase the -DMI dominance while providing a stronger directional movement.