What do on-chain data show for PEPE, which fell to critical levels after Bitcoin's sharp decline?$PEPE
The PEPE price has seen an 8% pullback just a few days after reaching an all-time high on Dec. 9. The RSI (Relative Strength Index), which measures momentum, is currently at 33.3, suggesting that the popular memecoin is approaching oversold territory. However, there are some signs that selling pressure could continue, as the RSI has yet to drop below 30.
In addition, PEPE’s 7-day MVRV ratio is at -9.3%, indicating that short-term investors have suffered significant losses. Historically, the MVRV ratio usually does not start a recovery movement before bottoming out between -12% and -15%.
The RSI measures the speed and magnitude of an asset’s price movement, helping to determine whether that asset is overbought or oversold. When the RSI is above 70, it typically indicates overbought and a correction is likely, while levels below 30 indicate oversold and a potential rally. PEPE’s current RSI of 33.3 could be considered a possible sign that the price could decline further.
In addition, the weakening of the memecoin trend raises danger signals for PEPE. There was a huge investment flow into memecoins in October and November. Especially the listing of memecoins by popular exchanges brought this trend to its peak. However, the emergence of new trends and the increase in Bitcoin's dominance seem to have negatively affected the interest in memecoins. This creates uncertainty for the future of PEPE and similar memecoins.