The fervor surrounding the Pepe [PEPE] memecoin has weathered choppy waters, as crucial on-chain metrics have painted a mixed picture.
Notably, IntoTheBlock and Santiment have unveiled intriguing patterns that might influence the short-term trajectory of PEPE.
Reduced User Interaction Raises Concerns
Of particular significance is the steep 26% decline in significant transaction volume for PEPE. Often a signal of whale involvement, this trend hints at major players withdrawing from the scene.
In addition to the dwindling whale actions, active addresses have dwindled by 7.43% in the past day. Such a drop could signify a waning interest among users or shifts in market sentiment.
A drop in active addresses typically accompanies a decrease in trading volume and could impact liquidity levels.
Despite these faltering metrics, the PEPE price chart showcases a symmetrical triangle formation. This pattern usually precedes a significant surge in volatility, either upward or downward.
This volatility squeeze, mirrored by the decline in sizable transactions, is closely linked to the aforementioned consolidation phase.
What Lies on the Horizon for PEPE?
As PEPE edges closer to the apex of its symmetrical triangle, market participants and investors should monitor the ongoing developments surrounding the memecoin, especially observing whale movements.
A diminishing whale presence, coupled with subdued user activity, could signal phases of accumulation or distribution, depending on the prevailing market sentiment.
Thus, the current consolidation phase might be laying the groundwork for a potential breakout.
Nevertheless, the direction of this breakout is likely to hinge on broader market sentiments and forthcoming developments within the memecoin space.