Pepe Coin price rebounds: Is the crash over?

The Pepe coin price rallied as the Santa Claus rally took place on Christmas Eve, joining other meme coins.

The third-largest meme coin, Pepe (PEPE), rose amid high volume as investors bought the recent dip. This rally occurred as Bitcoin (BTC) rose to $98,500 and the crypto fear and greed index approached the greed zone.

Most cryptocurrencies have recovered, with the market cap of all cryptocurrencies tracked by CoinGecko reaching $3.60 trillion.

While Pepe’s 24-hour volume reached 2.2 billion dollars, futures open positions increased for the third day in a row and reached 151 million dollars. It reached the highest level since December 30.

The cryptocurrency also jumped on signs that Pepe was at its cheapest Market Cap to Realized Value ratio since November 5th. The MVRV-Z score indicator is considered one of the most accurate indicators in predicting highs and lows.

This indicator is calculated taking into account the market price and realized value of an asset. This MVRV value has dropped to 1.28, a sign that it is oversold. Pepe last reached this MVRV value in November, and the coin had a strong rise to an all-time high of $0.00002830.

Pepe MVRV rate | Source: IntoTheBlock

Another paradox for Pepe is that there are signs that speculators are capitulating and exiting their trades. Data shows that the number of active, new and zero-balance addresses has fallen by over 20% in the last seven days.

As shown below, the active address rate dropped to 1.34%, the lowest level in more than a month. Most increases in Pepe prices occur when rates fall.

Pepe active address rate | Source: IntoTheBlock Pepe coin price analysis Pepe chart | source: crypto.news

The daily chart shows that the Pepe coin price rose as high as $0.00002830 at the beginning of this month and then experienced a sharp reversal.

It fell below the important support level of $0.00001713, which is the upper side of the cup and handle formation formed between May and November. A break and retest pattern is usually a sign of a continuation. Pepe remains above the 100-day moving average and is attempting to reverse the 50-day MA.

So, has the decline in Pepe prices ended? Not yet, because this rebound could be a dead cat bounce. It can also be part of the formation of a bear flag chart pattern, which is a popular bearish continuation signal.

Therefore, there is a risk that the coin will continue its downtrend once the Santa Claus rally ends. A full bullish trend will be confirmed when the cryptocurrency rises above the psychological point of $0.000025.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.