Factors Influencing Price Prediction of PEPE Cryptocurrency Over a 7-Day Period
Over the last 24 hours, the value of Pepe [PEPE] surged by 15.75% before experiencing a slight 2% drop, as indicated by CoinMarketCap data.
While several other memecoins also witnessed a rise, CryptoCrypto identified specific factors that made PEPE’s increase stand out.
Connection between Price and Activity
Analysis of on-chain data from Santiment revealed that active addresses for PEPE surged from 2669 on May 1st to 4470 presently.
The number of active addresses represents the unique users involved in transactions within the network. In the broader crypto sphere, this metric doesn’t consistently align with price movements.
Nevertheless, a close examination of PEPE’s scenario uncovered a strong correlation between price and network activity.
If this metric continues to climb, the price of PEPE could also elevate. Conversely, a decline in active addresses might impede the upward trajectory of the memecoin.
With the price surge, Social Dominance also saw an uptick. Social Dominance gauges the level of project discussions compared to other top 100 projects.
Hence, the increase implied that the market bestowed more attention on the memecoin compared to its peers. Nonetheless, excessively high social dominance could adversely impact the price, as illustrated in the data below.
Potential Rise to $0.00001
Previously, when Social Dominance reached 2.21% on March 4th, the token’s upward trend reversed. A similar pattern emerged on April 1st when the metric signaled PEPE was overvalued.
Moreover, Social Dominance maintained a relatively healthy level. Consequently, the token’s price might hit $0.00001 before any retracement occurs.
An evaluation of Social Volume by CryptoCrypto indicated that it hadn’t peaked, suggesting that interest in PEPE wasn’t at a peak.
Based on historical trends, this could present a buying opportunity before reaching a local peak.
In the same timeframe, the one-day circulation dropped from 11.50 trillion to 3.97 trillion. This decline in circulation could potentially sustain PEPE’s upward movement.
A decreased circulation allows room for less selling pressure, contingent on an increase in buying momentum.
Another metric considered was the dormant circulation, currently down to 59.54 billion over 90 days.
This reduction indicates that longtime token holders are holding onto their assets, reluctant to sell. Should this trend persist, another rally for PEPE might be on the horizon, this time possibly reaching new highs.
In Conclusion
Summarily, factors such as active addresses, Social Dominance, Social Volume, circulation metrics, and dormant circulation play pivotal roles in influencing price movements of the PEPE cryptocurrency. By monitoring these variables, investors and analysts can gauge the potential direction of PEPE’s value over the next seven days.