PEPE Price Outlook: Is It Possible to Overcome the Memecoin Crisis?

Question

As of the time of writing, PEPE has skyrocketed 35.2% in just four days. However, the daily chart still shows that the downtrend is prevailing. In fact, the memecoin has plunged 75.1% from its peak set in December. Notably, the cryptocurrency market as a whole has suffered significant losses over the past three months.

Memecoin has been one of the worst-performing sectors in recent times. Since Dec. 9, the segment's total capitalization has evaporated $87.5 billion — representing a 63% decline. Given the market's lack of significant buying power, this is why investors can still hold out hope for PEPE's recovery. PEPE Investor Decides – Accumulation or Surrender?

PEPE balances on exchanges will maintain a relatively stable trend throughout 2024. However, since November, when prices started to rise, the amount of PEPE on the floor has been steadily decreasing. This trend continues even as prices plummet. This shows the (HODL) holding behavior of investors – they withdraw PEPE from the exchange and put it in cold wallets. While this can be seen as a positive signal, so far, this move has not been enough to stop the price decline.

The SOPR (Spent Output Profit index Ratio) measures the ratio of the actual value of coins sold to the value when they were purchased. If the SOPR is above 1, it indicates that investors are selling to take profits. Conversely, if the SOPR is below 1, it means that they are selling at a loss – a negative signal. Since the beginning of February, PEPE's SOPR has consistently remained below Level 1 – a sign that many investors are capitulating. Persistent selling pressure has caused PEPE prices to continuously create new lower lows. This trend likely won't reverse until Bitcoin (BTC) recovers and PEPE attracts massive demand.

The MACD indicator is currently below the 0 mark, indicating that the dominant driver in the market is still a downtrend. The price structure has also remained negative since the end of January. Meanwhile, the OBV indicator has been in decline for the past three weeks, but is now hovering around the lows of early February. Overall, the bears are still dominant. However, the declining amount of PEPE on the floor may give some hope to investors. While this signal is unlikely to reverse the downtrend immediately, it is at least a start.