The Pepe coin price joined other meme coins in a rebound as the Santa Claus rally took place on Christmas Eve.
Grandpa (PEPE), the third-largest coin, surged amid high volume as investors bought the recent dip. This rally occurred under the name of Bitcoin (BTC) surged to $98,500, and the crypto fear and greed index approached the greed zone.
Most cryptocurrencies rallied, with the market cap of all coins tracked by CoinGecko reaching a high of $3.60 trillion.
Pepe recorded 24-hour volume of $2.2 billion, while futures open interest increased for the third day in a row, reaching a high of $151 million. It reached its highest level since December 30.
The coin also surged as signs showed that Pepe was the cheapest since November 5 in terms of the market value/realized value indicator. THE MVRV-Z score The indicator is widely considered to be one of the most accurate indicators for predicting highs and lows.
This indicator is calculated by considering the market price of an asset and its realized value. This MVRV value has fallen to 1.28, a sign that it has become significantly oversold. The last time Pepe had this MVRV value was in November, and the coin saw a strong rally to reach an all-time high of $0.00002830.
The other contrarian argument for Pepe is that there are signs that speculators have capitulated and abandoned their trades. Data shows that the number of active, new and zero-balance addresses has fallen by more than 20% over the past seven days.
As shown below, the active address ratio fell to 1.34%, its lowest level in over a month. Most Pepe price breakouts occur when the ratio is falling.
Pepe Coin Price Analysis
The daily chart shows that Pepe coin price peaked at $0.00002830 at the start of the month and then suffered a sharp reversal.
It fell below the important support level at $0.00001713, the upper part of the cup and handle pattern that formed between May and November. A pattern of breaking and retesting is usually a sign of continuation. Pepe has remained above the 100-day moving average and is attempting to reverse the 50-day moving average.
So, is Pepe’s price crash over? Not yet, since this bounce could be a dead cat bounce. This may also be part of the formation of a bear flag chart pattern, a popular downward continuation sign.
Therefore, there is a risk that the coin will resume its downward trend once the Santa Claus rally ends. A complete bullish breakout will be confirmed when the coin surpasses the psychological point of $0.000025.
Disclosure: This article does not represent investment advice. The content and materials presented on this page are intended for educational purposes only.