Is PEPE a Good Buy? Pepe Coin Market Overview and Technical Indicators

Currently trading at approximately $0.000013, PEPE has experienced a sharp 60% drop from its peak, leaving many investors questioning if this is an opportunity to buy the dip or if further declines are imminent.

Pepe Coin (PEPE) has experienced a sharp decline from its all-time high (ATH), currently trading at approximately $0.000013. This marks a 60% drop from its peak, leaving many investors questioning the future of the meme coin. Despite the downturn, some analysts and investors are considering the price decline as an opportunity to buy the dip.

A closer examination of the PEPE price chart reveals a downtrend, with the coin losing 20% of its value in the past week alone. However, some technical indicators suggest that PEPE might be setting the stage for a bullish reversal.

Pepe Coin (PEPE) price chart showing a downtrend. Source: TradingView

One indicator showing potential for a rebound is the 30-day Market Value to Realized Value (MVRV) ratio, which has recently dipped into a possible buying zone. Historically, when the MVRV enters this zone, a price rebound tends to follow.

Analysis by MaxPain points out that previous instances of MVRV entering this zone have led to significant price surges. In the past, the meme coin has experienced rallies of 72%, 71%, and 51% after such MVRV entries.

Another observation is the increasing accumulation of PEPE by non-exchange wallets, which could be a sign of weaker selling pressure. According to data from Santiment, the amount of PEPE held on exchanges has sunk.

This could indicate long-term buying and holding rather than trading on exchanges, which is usually a precursor to a strong upward price spike in the market.

In summary, while PEPE has experienced a significant price decline, there are indications that the meme coin could be preparing for a rebound. The 30-day MVRV ratio entering a potential buying zone and the increasing accumulation of PEPE by non-exchange wallets are both suggestive of a possible price uptick. However, it's important to note that meme coins are inherently volatile, and investors should proceed with caution and conduct their own research before making any investment decisions.