As the anticipation for a better October grows, the frog-themed Meme Coin Pepe (PEPE) could be one of the first cryptocurrencies to post gains. Dubbed “Uptober,” the month, which has historically seen strong growth, seems to be coming at an ideal time for PEPE prices.
PEPE price recently reached $0.0000078 after a rapid increase of 8% in the last 24 hours. However, will the next few weeks bring more profits?
Pepe Helps Investors
Between September 13 and 16, the Market Value to Realized Value (MVRV) of Meme Coin dropped sharply from 33% to 26%. This drop coincided with the price of PEPE falling from $0.0000079 to $0.0000071.
The MVRV spread measures the profitability of short-term and long-term investors. If this ratio falls, short-term investors will have more unrealized profits than the other groups. This is usually a bearish sign.
However, at the time of writing, this index has increased to 28.36%, suggesting that PEPE’s recent price increase has helped long-term investors regain the initiative. History shows that if this gap continues to increase, this cryptocurrency could resist bearish signals.
Therefore, PEPE seems to have returned just in time for the rally and could start the “Uptober” on a strong note. Another indicator supporting this move is the Bear/Bull Strength Index (BBP), a technical analysis tool that measures trend strength and detects divergence between momentum and price.
When the BBP is near zero, which is the 13-period Exponential Moving Average (EMA), the market is in equilibrium. In this situation, neither buyers nor sellers have complete dominance. However, if the indicator is above or below the base level, a market force will take over.
On the 4-hour PEPE/USD chart, BBP is above the 13-period EMA. This shows that buying power clearly outweighs selling power. With this position, PEPE price could continue to rise in the last weeks of September and early “Uptober.”
PEPE Price Analysis: $0.000011 Could Come Soon
In addition to the buying volume shown on the 4-hour chart, the daily PEPE/USD chart also paints a bullish picture. For instance, the Meme Coin coin formed a descending triangle from July 30 to yesterday.
Fortunately, the PEPE price broke out of the triangle, suggesting that the token may not face a strong pullback. This breakout also coincided with the price crossing above the 20-day Exponential Moving Average (EMA).
From a trading perspective, a price break above the 20 EMA (blue line) is generally considered a confirmation of an uptrend. Therefore, as long as the price trades above this indicator, PEPE could rise by 50%, potentially reaching $0.000011 by October.
While this optimistic prediction seems plausible, investors need to be cautious. In particular, if PEPE drops below the EMA again, this prediction may not come true. Instead, the price could drop to $0.0000063.
