Memecoins
7-day PEPE price prediction – 3 key factors will help memecoin
- The increase in active addresses propelled the significant rise in prices.
- Circulation has fallen and many old coins have remained stagnant, indicating further upside potential.
The price of Pepe [PEPE] rose 15.75% in the last 24 hours before falling 2%, according to data from CoinMarketCap.
Although other memecoins also surged, AMBCrypto found specific reasons why the rise was special for PEPE.
The price is linked to the activity
According to Santiment on-chain data, PEPE’s 24-hour active addresses increase from 2669 on May 1 to 4470 at the time of publication.
Active addresses indicate the number of distinct users transacting on the network. In the broader crypto market, this metric does not always correlate with price.
However, a review of the PEPE situation showed that price is strongly correlated with network activity.
Source: Santiment
If the measure continues to increase, the price of PEPE could also follow. On the contrary, a drop in active addresses could slow down the upward movement of memecoin.
Due to the price increase, Social Dominance has surged. Social dominance shows the rate of discussions about a project compared to other projects in the top 100.
Therefore, the increase implied that the market was giving memecoin the attention that others had not received. However, extremely high social dominance might not be beneficial in terms of price, as shown in the chart below.
A rise to $0.00001 could be next
For example, when Social Dominance hit 2.21% on March 4, the token reversed from its rise. A similar situation occurred on April 1, as the metric indicated that PEPE was on top.
Moreover, social domination was at a relatively healthy level. As such, the token’s price could reach $0.00001 before a retracement appears.
As for social volume, AMBCrypto noticed that it was not close to previous highs, indicating that the search for PEPE was not intense.
Based on historical data, this means there could be a buying opportunity available before it hits the local top.
Source: Santiment
In the meantime, the daily circulation fell from 11.5 trillion to 3.97 trillion. Concerning its price, the decrease in traffic could help the PEPE to continue its movement towards the north.
Indeed, less distribution gives way to less sales pressure. However, this would only be the case if the buyer momentum increase.
Another metric we assessed was dormant circulation. At press time, the 90-day dormant circulation had fallen to 59.54 billion.
Source: Santiment
Realistic or not, here it is Market capitalization of PEPE in DOGE terms
This decrease means that previous holders of the token have refrained from moving their assets. Most are therefore not willing to sell. If this were the case in the future, a new PEPE rally could be near.
This time, the token could reach a new high.