The MVRV Z-Score of Pepe (PEPE) coin indicates deep undervaluation, with it reaching June 2023 levels.

The negative MVRV Z-Score reading indicates that investors currently hold Pepe (PEPE) at a loss value.

The MVRV Z-Score for Pepe (PEPE) coin has reached deep undervaluation levels, returning to June 2023 values as the Z-Score now stands at -1.

This deep undervaluation persists even as investors are currently in the red, according to the latest data from IntoTheBlock. The market data shows that periods of low MVRV Z-Score values typically signal a phase of accumulation, which eventually leads to price growth.

However, the same data reveals a 73.94% decline in large transactions (between $1M-$10M), while smaller transactions (between $0-$1) saw a 149.81% increase, suggesting a shift towards retail trading. This shift might render PEPE more vulnerable to speculative price swings, especially if driven by retail traders.

Furthermore, the PEPE/ETH trading pair exhibits an RSI divergence pattern, which has historically signaled major market reversals. This pattern occurs when the price action creates lower lows but RSI generates higher lows, indicating decreased selling pressure.

The price pattern has been observed three times since July 2023 (as highlighted in the chart above). As RSI falls below 30 after forming bullish divergence patterns, we typically witness substantial price increases.

As noticeable in the chart above, every time this pattern unfolded, the Ethereum price experienced a significant rally in the period subsequent to the divergence. This effectively transitions the price trend from negative to positive. Notably, the present RSI measurement at its minimum point coincides with the breakout points for all three instances of the divergence pattern.

For this trend to continue, we would need to see RSI begin to move higher and the price break through a key resistance level. If this occurs, it could indicate that the trend is continuing in the same direction.

Historical market data indicates that these divergent patterns consistently indicate trend reversals, especially when RSI drops below 32. Therefore, traders are keeping an eye on this setup to see if it will trigger another breakout.

Finally, Pepe is currently being evaluated for inclusion in the Coinbase COIN50 Index, which tracks the 50 largest cryptocurrencies by market capitalization, with Bitcoin holding a 49.47% weight in the index.

Pepe, the Frog-based meme token, has seen a significant price increase since its launch due to massive speculative trading activity. Analysts believe that inclusion in the index will increase investor exposure and ultimately lead to short-term price growth.

Crypto analyst CryptoElites predicts a 15x increase in the short term as the token approaches the 1.618 Fibonacci extension level at $0.0001451.

The token's fate depends on the general crypto market trends and investor actions, but COIN50 Index membership could serve as a catalyst for growth. The review process is ongoing, and its final results will determine how Pepe performs throughout 2025.