Blockchain analytics platform Santiment says interest in the memecoin Pepe (PEPE) may be waning after its explosive run.
Sanitation say that the rival Dogecoin (DOGE) and Shiba Inu (SHIB) is unlikely to hit an all-time high again on May 5, but could see a smaller upside move in the near term after a 67% drop in value.
According to Santiment, the measure of social dominance closely mirrors the price action of PEPE. If the metric drops a few percentage points lower, it would indicate that traders are moving on.
“[PEPE] still makes up about 5% of the discussions compared to the top 100 assets. And if it moves into the 1%-2% range, that would be a good sign that traders are starting to drift off and look for pumps from other altcoins.
Santiment says upward moves are still possible for PEPE and an indicator to look for is whether large addresses with at least 100 million PEPE become more active.
“Looking at the largest addresses with 100 million PEPE or more, we see that on May 5 they also started to change course.
If you see these lines going back up, PEPE is much more likely to pump for a second time (though probably a smaller one).
Santiment also says that the 30-day market value to realized value (MVRV), which traders use to detect overbought or oversold conditions, appears to show that PEPE is moving into an “opportunity zone.”
“In the past 24 hours alone, the 30-day MVRV shows that traders are essentially breaking even again. If it gets into negative territory it would look like a juicy setup as traders will be in the red and in the ‘opportunity zone’.”
Another indication of possible upward movement, according to Santiment, is that trading volume is starting to pick up.
“Trading and transaction volume looks about as expected, with everything fading quite a bit since the May 5th high. However, things have started to pick up again in the last 24 hours with these stats.
Finally, Santiment says that if relatively dormant addresses become active, an upward price move could follow.
“The average number of days PEPE is in the average wallet is currently about five days. On May 5, this number even went below two days. Before a bull run or minipump starts, it is usually preceded by a few sleeping addresses that start moving.”
Pepe reached a low of $0.000000055142 on April 18 and an all-time high of $0.00000372, a gain of about 6,650%. Pepe is worth $0.00000122 at the time of writing, down 24.1% in the last 24 hours.
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