Over the past ten days, Pepe [PEPE] experienced a surge in volatility. As Bitcoin [BTC] faced an 8.4% decline from October 7 to October 10, the prices and market sentiment for PEPE also took a downward turn. Despite this, among the top 5 memecoins, PEPE showed the second-largest increase in value in the past week.
Leading the pack was Dogwifhat [WIF], which climbed by 17.7% in just 7 days. In comparison, PEPE registered a 5.5% increase during the same period. Despite the bullish technical outlook on the daily chart, investors are now wondering if buyers will maintain their momentum.
Price Gains Fuel Network Growth and Activity
Given that memecoin prices and user engagement are closely tied to their popularity, the recent bearish trend has impacted the number of daily active addresses on the network. Additionally, network growth has slowed down in October.
While the selling pressure may persist in the short term, the 30-day MVRV metric remains close to zero, indicating potential profit-taking and heightened sell activity following any price rebounds. On the bright side, the long-term MVRV remains positive, having shown consistent growth since October 2023. This suggests that PEPE has delivered substantial returns to its holders amidst market ups and downs.
Market Stagnation Concerns Emerge
The 90-day mean coin age has been steadily decreasing since July, pointing towards a phase of token distribution among holders with a 3-month timeframe. Meanwhile, the 365-day mean coin age has failed to show an upward trend since late August.
This signals consistent coin movements between addresses and hints at increased selling activity. Concurrently, the mean dollar invested age continues to rise, indicating accumulation of stagnant and long-held coins in the same wallets. Once these coins start moving to newer wallets, the metric could reverse, signaling the onset of bullish momentum in the market.