What’s driving Pepe’s latest rally?
- PEPE had an undervaluation index score of 4.2, meaning that it was undervalued.
- Buying pressure on PEPE was high, as was whale accumulation.
After a promising one-month bull rally, Pepe’s [PEPE] growth momentum seemed to have declined on 8th November. However, things were quick to shift in the meme coin’s favor as its price rallied in double digits in the last 24 hours.
Upon checking, AMBCrypto found out a possible reason that could have fueled this surge.
PEPE is back on track
PEPE had a promising rally last month, outperforming most cryptos as its price surged by more than 90%.
However, its price chart turned red on 8th November, saddening investors as it suggested an end to the meme coin’s bull run. But PEPE had other plans, as its price once again gained bullish momentum.
According to CoinMarketCap, PEPE was up by over 13% in just the last 24 hours.
At the time of writing, it was trading at $0.000001344 with a market capitalization of over $560 million. The good news was that its price rally was accompanied by a 40% hike in its trading volume.
A possible reason behind this surge could be the meme coin being undervalued.
Cryptolaxy posted a tweet highlighting the fact that PEPE had an undervaluation index of 4.2.
For starters, the undervaluation index reveals whether the price at which an asset is trading is actually the price it should have been valued at. Therefore, the possibility of a price uptick seemed likely.
Top-11 #PJTs with Market Cap from $300M to $500M by #Undervaluation Index (UI*) #UI is a Market Cap to 24H Trading Volume ratio applied to PJTs with a similar Market Cap. The lower the UI, the more the PJT is undervalued.$SUI $TIA $TRB $PEPE $COMP $QTUM $DASH $AGIX $ASTR… pic.twitter.com/ZvLlEiCRTV
— Cryptolaxy #StandWithUkraine (@Cryptolaxy) November 7, 2023
In fact, another tweet from Lookonchain pointed out that a whale has already started to accumulate PEPE.
As per Santiment, not only whales but investors at large were also stockpiling the meme coin, as evident from the rise in its total number of holders.
Other metrics suggested that the uptrend might continue further. For instance, PEPE’s exchange outflow spiked, suggesting that buying pressure on the coin was high.
Additionally, its MVRV ratio and network growth both increased over the last few days.
What to expect from PEPE
Though the metrics looked optimistic, to get a better understanding of which way PEPE was headed, AMBCrypto checked the meme coin’s daily chart.
Realistic or not, here’s PEPE market cap in BTC terms
PEPE’a MACD displayed a bullish crossover, thanks to the recent price uptick. Its Relative Strength Index (RSI) was also moving up, increasing the chances of a continued surge.
However, the state of the Money Flow Index (MFI) was worrying as it registered a downtick and was headed towards the neutral mark of 50.