As the market gradually heats up, PEPE begins to receive more attention and attention.
Pepe [PEPE] has performed quite well in November so far, but has underperformed in comparison to Dogecoin [DOGE]. However, this could be a sign that the frog-themed memecoin may have better days ahead.
PEPE was one of the best performing memecoins in 2024, but its performance in the second half of the year was disappointing.
First, PEPE has failed to set a new 2024 high, while DOGE seems to have been bucking the trend. The latter has risen 206% from its November low to its recent high, while the former has risen 92%.
PEPE may benefit if…
The top coins in their respective categories have been enjoying strong growth, and this is true for both Dogecoin and Bitcoin [BTC].
However, liquidity rotation may begin soon, paving the way for monetary policies such as PEPE to enjoy large liquidity inflows.
PEPE may already be poised to experience more upside and hit new highs before the end of 2024. Its open interest surged to $214.89 million in the past 24 hours, an all-time high.
This surge suggests that memecoin is currently gaining unprecedented traction in the derivatives space. But what about demand in the spot market?
IntoTheBlock’s trading data shows that PEPE has seen just over 12,100 transactions in the past 24 hours. Trading volume for the memecoin has been rising this month, reaching a 3-month high at the time of writing.
The correlation with price suggests that the surge in transaction volume is primarily buying pressure, rather than selling pressure.
This observation also confirms that memecoin has been gaining popularity in the market this month, a result that could lead to strong bullish outcomes.
On-chain data also shows that whale activity has been on the rise since early November.
This is evidenced by the surge in inflows from large holders from a low of PEPE 1.81 trillion on November 2 to PEPE 16.33 trillion at press time.
While major shareholders have been increasing their holdings, the same category of investors also appears to be hindering PEPE from further gains.
There was also a significant increase in outflows from large holders, from 1.6 trillion tokens on November 1st to 15.46 trillion tokens on November 12th.
As of the time of writing, the balance between inflows and outflows from major shareholders still favors the bulls. However, this could change soon, depending on the current market sentiment.