A Full Onchain Analysis on PEPE: Can It Go Up By 50% in the Coming Days?

PEPE, one of the most talked-about meme tokens, has experienced a notable consolidation period recently. 

With the broader market conditions fluctuating, PEPE holders are wondering if a bullish surge is on the horizon. 

But what does the data say? Could PEPE be gearing up for a potential 50% rise in the coming days?

In this article, we dive deep into the on-chain metrics, the state of the derivatives and spot markets, and technical analysis to assess the likelihood of PEPE’s next big move.

PEPE Is Stuck in a Consolidation Range

Currently, PEPE finds itself in a consolidation range, where its price has remained relatively flat for some time. 

This is not unusual in the world of meme tokens, which often experience explosive gains followed by periods of stagnation.

Despite the lack of strong price movement, there’s reason to believe that PEPE may be gearing up for a potential breakout. 

The overall market conditions seem to be improving, with Bitcoin and other major cryptocurrencies showing signs of recovery. 

This could provide the necessary push for meme tokens like PEPE to catch up and see a similar rally.

However, one key factor missing in PEPE’s case is volume. While other meme tokens are enjoying significant trading activity, PEPE’s trading volume has been lackluster. 

To see any meaningful upward movement, we would need to see a sharp increase in buying pressure and community interest.

Onchain Data Shows Derivatives Market Still Unsupportive

When we look at onchain data, the outlook for PEPE in the derivatives market isn’t particularly encouraging. 

The open interest volume—a measure of how many outstanding contracts are open in the derivatives market—has remained flat over the past week. This suggests that there hasn’t been a strong surge of interest in trading PEPE derivatives.

The lack of movement in open interest volume reflects a cautious attitude among traders. Without significant derivatives activity, it’s unlikely that PEPE will experience a strong price rally in the near term. 

The absence of buying volume further reinforces this sentiment, as traders are waiting for a clear signal before committing more capital to PEPE.

Spot Market Netflow: More Selling Pressure than Buying

One of the key indicators of potential price movement is netflow in the spot market. In simple terms, netflow measures the amount of a token moving into or out of exchanges. 

When the netflow is positive, it means more tokens are being deposited into exchanges than are being withdrawn. This typically indicates selling pressure, as traders may be preparing to sell their holdings.

Unfortunately for PEPE, the netflow is currently positive, suggesting that there may be more potential selling pressure than buying interest. 

This aligns with the consolidation seen in the price and the lack of enthusiasm in the derivatives market.

When there is a positive netflow, it means that more PEPE tokens are entering exchanges, likely to be sold off. 

This could dampen any immediate hopes of a price surge, as it indicates that traders are still cautious or possibly looking to take profits at current levels.

Technical Analysis: Breaking the $0.0000079 Resistance Could Trigger a 50% Rally

While the onchain and market data suggest a cautious outlook, the technical analysis offers a glimmer of hope for PEPE holders. 

The token is currently testing a significant resistance zone at $0.0000079. If PEPE can break through this resistance, it could signal the start of a major price movement.

In particular, the technical patterns suggest that if PEPE successfully breaks this level, the token could experience a rally of more than 50%. 

In such cases, momentum often takes over, driving prices higher as traders rush to capitalize on the breakout.

However, it’s important to exercise caution. While a breakout above $0.0000079 could lead to a sharp increase in price, it’s equally possible that the token could fail to break this level and continue consolidating or even pull back. 

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Conclusion

PEPE’s price action has been stuck in a consolidation phase, and while there are reasons to believe that a breakout could be on the horizon, the data doesn’t fully support a massive rally just yet. 

The lack of volume, especially when compared to other meme tokens, means that it might take more time for PEPE to gather the momentum it needs.

As always in the world of crypto, especially with volatile assets like meme tokens, it’s essential to stay cautious and use proper risk management.

Frequently Asked Questions

Q1: What is causing PEPE to consolidate?
PEPE is currently experiencing low trading volume and cautious activity in the derivatives market, leading to its price consolidation.

Q2: Is there any indication PEPE will rally soon?
The technical analysis suggests that a breakout above the $0.0000079 resistance could trigger a 50% rally, but caution is advised due to lack of volume and potential selling pressure.

Q3: What is netflow and how does it affect PEPE’s price?
Netflow measures the movement of tokens into or out of exchanges. A positive netflow for PEPE means more tokens are being moved into exchanges, potentially indicating selling pressure.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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