The cryptocurrency market has experienced significant volatility in recent times. PEPE token, in particular, has witnessed a substantial drop, especially amid the surge of Dogecoin, and is attempting to capture the attention of investors. On-chain data sheds light on the reasons behind the fluctuations in PEPE's price. In this article, we will examine the price fluctuations of PEPE token and the impact of Dogecoin.
Decline of PEPE:
PEPE token experienced a decline of over 45% from its monthly peak of $0.00000183 recorded on July 3rd. This drop is associated with investors shifting away from PEPE and turning towards other crypto assets like Dogecoin. After an unexpected turnaround by the end of June, pushing PEPE to $0.0000018 on July 3rd, interest in PEPE waned in recent weeks, resulting in a 45% price decrease.
Role of On-Chain Data:
On-chain data helps us better understand the state of PEPE. In mid-July, as Dogecoin's price surged, investors started to leave the PEPE network. This indicates a decrease in the number of users on the PEPE network and a decline in demand. PEPE's Daily Active Addresses experienced a significant drop during this period, decreasing by 61% from 5,086 to 1,999 on July 25th. #memecoins
Network Growth and Market Share Loss:
Another data point that emerged after the start of Dogecoin's price rally is PEPE's struggle to attract new users. When Dogecoin's price rally began on July 14th, PEPE's Network Growth plummeted by 73%, with only 463 new addresses compared to 1,703 previously. This suggests that PEPE lost market share to Dogecoin and other meme coin competitors. #onchain
Future Perspectives:
If Dogecoin continues its upward trajectory, it may be challenging for PEPE's price to recover. If investors prefer buying Dogecoin instead of PEPE, the price of PEPE could drop below $0.0000010. However, analysts point out that the $0.0000015 resistance level could be a crucial area for an upward price movement. If investors take steps to avoid falling into a net loss position by buying more tokens, a recovery in the price of PEPE might be possible. #dogecoin $DOGE
In Summary:
PEPE token has experienced a significant drop due to Dogecoin's surge, leading investors to turn towards Dogecoin. On-chain data helps explain the reasons behind PEPE's price decline. However, it is essential to remember that the cryptocurrency market is highly volatile, so it is crucial to be cautious and conduct your research when making investment decisions. The future price performance of PEPE may rapidly change depending on market developments. #pepe $PEPE