Pepe Coin (PEPE) surprised many with its return to relevance in the month of June, surging by a remarkable 85%. Yet, with its recovery seeing many profits taken from the meme coin, what could be next for the asset? Well, the data is seemingly presenting a mixed bag for investors.
On-chain data shows that many long-term investors are starting to book profits from the asset. Yet, there are many who expect a price correction for the asset. Subsequently, could its 85% bounce back signal a return to relevance in the overall meme coin market for the asset?
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What Comes After PEPE’s 85% Bounce Bank?
The meme coin market is long known as one of the digital assets most volatile. Yet, it is also well known for its passionate community of investors, which has seemingly propelled a lot of projects to the top of that particular market. Now, with one meme coin making a miraculous return to form, let’s delve into what’s to come for its overall performance.
Pepe Coin (PEPE) saw a tremendous 85% surge between June 15th and July 4th. However, that development has certainly brought with it a trade-off for investors, with many long-term holders taking profits from its positive performance.
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One metric that was certainly impacted this week is PEPE’s Age Consumed. Moreover, Santiment data shows that the figure jumped to 365 trillion on July 3rd. Age Consumed is a data set that evaluates trading sentiment among long-term holders. Additionally, it is calculated through the aggregation of the number of coins recently transferred, multiplied by the days spent in the previous wallet.
Sudden jumps in the Age Consumed metric amidst a price increase indicate that investors are offloading the asset. Interstingly, PEPE noted a similar spike in the Age Consumed measure on May 19th. Then it was followed by a 30% price correction. That could indicate a pattern for the meme coin, with a price decline likely in the cards for the asset.
User Activity Decline
Additionally, PEPE has noted a startling decline in user network activity despite its price increase. Specifically, between June 28th and July 4th, daily active addresses were markedly slower. Decreasing over that time period by 24% despite the price simultaneously growing by 16%.
Daily active addresses are a calculation that shows the number of unique addresses that facilitate transactions. Subsequently, if it increases during a price surge, it is lily indicative of market speculation driving price action. Moreover, that figure also signifies what could be an impending downturn for the assets in the coming weeks.
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Ultimately, the asset will likely once again retreat below the $0.0000010 price. Currently, PEPE has seen its price fall 5.84% over the last 24 hours, trading at $0.0000016. Nevertheless, a fall to below $0.0000008 could be in the cards if support levels are not met in the coming days.