Prediction:
The price of PEPE has experienced a significant fluctuation, dropping 42% from its peak in 2024 to reach $0.000006 on March 19. However, on-chain data suggests that the rally may not be over yet.
Since March 19, there has been a notable pullback in the memecoin markets. Tokens like PEPE, Dogewifhat (WIF), and Book of Memes (BOME) have all seen triple-digit gains, reaching historic highs in the past week.
Despite the price dip, the PEPE network continues to grow. Its market capitalization surged above $3.5 billion, and it became the second-largest memecoin ecosystem on the Ethereum network, after Shiba Inu (SHIB), when its price reached $0.00001 on March 14.
However, as the price of PEPE dropped further, reaching $0.00006 on March 19, there was a frenzy of profit-taking, causing the price to spiral downward.
Despite the sell pressure, PEPE’s strong performance over the past 30 days has improved its market position. It continues to attract new users, which could potentially lead to an early recovery.
Santiment’s metric for measuring the number of active users on a cryptocurrency network shows that the number of PEPE holders has increased. From February 29 to March 19, the total number of holders grew from 159,100 addresses to 188,200 addresses, with 29,100 new users joining the network.
This increase in funded wallets indicates growing retail adoption and fresh capital flowing into the ecosystem. Notably, the chart shows that PEPE’s recent price rallies have coincided with spikes in new funded wallets.
This suggests that even during a market dip, the network is attracting a significant number of new users, indicating that strategic new entrants may be buying the dip.
Considering the 42% price decline and the dip below the 20-day SMA price, strategic traders looking to buy in at the bottom may view this as the perfect timing to enter the market. The growing demand from the newly-funded PEPE addresses suggests that market forces are aligned for PEPE to hold a steady support level above $0.000006.
To regain momentum, PEPE’s price must first surpass the initial resistance at $0.000008. IntoTheBlock’s global in/out of money data supports this outlook, showing that there are addresses holding PEPE at the maximum price range of $0.000008, which could act as a sell-wall.
If PEPE can overcome this roadblock, the rally could gain momentum and potentially reach $0.00001.
However, if PEPE loses support at $0.00006, the bears may remain in control. Nevertheless, this outcome seems unlikely due to the presence of a strong support buy-wall.
At this range, 21,000 investors who bought PEPE at an average price of $0.000006 could make frantic purchases to avoid falling into a net-loss position.
