On Christmas Eve, during the Santa Claus rally, Pepe coin, the third – biggest meme coin, joined other meme coins in a rebound. As Bitcoin jumped to $98,500 and the crypto fear and greed index neared the greed zone, investors bought the recent dip, leading to Pepe’s surge in a high – volume environment.
The market cap of all coins tracked by CoinGecko reached a high of $3.60 trillion. Pepe had a 24 – hour volume of $2.2 billion, and its futures open interest rose for the third consecutive day, hitting a high of $151 million, the highest since December 30.
The Market Value to Realized Value (MVRV) indicator, a widely – regarded accurate tool for predicting tops and bottoms, shows that Pepe is at its cheapest since November 5. The MVRV value has dropped to 1.28, indicating it’s highly oversold. The last time it had this value, it rallied to an all – time high of $0.00002830.
There are also signs that speculators have capitulated. The number of active, new, and zero – balance addresses dropped by over 20% in the last seven days. The active addresses ratio has fallen to 1.34%, its lowest in over a month, and many Pepe price breakouts occur during such drops.
Earlier this month, Pepe’s price peaked at $0.00002830 and then reversed harshly, dropping below the important support level of $0.00001713 (the upper side of the cup and handle pattern formed between May and November). However, it remained above the 100 – day moving average and is trying to flip the 50 – day MA.
While Pepe has rebounded, it’s too early to say the crash is over. This rebound could be a dead cat bounce or part of a bearish flag pattern, a common downward continuation sign. There’s a risk the coin will resume its downward trend when the Santa Claus rally ends. A complete bullish breakout will be confirmed only when the coin rises above the psychological level of $0.000025.
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