[TL; DR]
PEPE market capitalization surged to $1 billion within 20 days after its launch.
The PEPE price that started falling on 24 August shows no sign of a potential recovery.
Like PEPE the other leading meme coins are performing below their yearly highs.
Introduction
Meme coins have become a unique crypto asset class which many investors trade. Although they lead to huge returns one may also incur losses. The important thing is to do a thorough research before investing in cryptocurrencies, especially meme coins. PEPE is one of the meme coins that has had a big impact in the crypto sector. For the greater part of the year PEPE coin has been performing well. However, it entered a rough patch during the last few weeks when its price dropped significantly. This analysis covers PEPE’s recent price movements and the possibility of its recovery.
PEPE Market Analysis: The Prospect for a Recovery
Soon after its launch PEPE entered a boom which enabled it to attain a market capitalization of over $1 billion within 20 days. In fact, PEPE gained by more than 7,000% within that period. Within the first month, it became one of the leading meme coins. On 5 May, for instance, Pepe crypto soared to $0.000004354 and attained a market capitalization of $1.87 billion, showing a significant market performance. Based on the PEPE market analysis one of the major reasons for its meteoric price rise was its presence on most major exchanges. In fact, within a very short period PEPE was listed on Gate.io, Binance, Uniswap, Huobi, KuCoin, OKX and MEXC.
Despite its solid performance during the greater part of the year PEPE coin tanked along the way. By 4 September, for instance PEPE was priced at $0.0000070. And at the time of writing, 14 September, PEPE is trading at $0.0000077 after losing value by 1.4% within the last 24 hours. However, data on Coingecko shows that it gained by 12.3% within the last two weeks. The PEPE coin analysis shows that its price started falling on 24 August after reaching a high of $0.0000097. The following graph shows PEPE crypto volatility since that date. PEPE Price Movement – Coingecko
As seen on the graph, the PEPE price has been falling since 24 August. Despite the recent gains it has not rebounded to the expected level. Right now, the market anticipates that PEPE may have a strong rebound soon as we go towards the end of the year.
PEPE Decline: Factors Influencing its Current Performance
There are several factors that are influencing the PEPE meme coin performance. As an example, there has been a sharp decrease in Pepe's active addresses since mid-August. It is worth noting that during the first week of August Pepe's active addresses reached a peak point. However, that metric has been very low since February.
The active addresses metric measures the level of user interaction of a cryptocurrency. Its rise is a bullish signal since it shows that there is a rise in user interaction. On the other hand, its fall is a bearish signal as that shows a low level of user participation. If the current trend persists it increases PEPE investment risks as it may take long for it to rebound. That may frustrate its investors which can lead to a further price fall. The next graph shows the fluctuations in Pepe’s active addresses. Pepe Active Addresses: Santiment
As the graph denotes the Pepe Active Addresses are at a very low level. This current trajectory contrasts what is happening with other meme coins. For example, NEIRO, a meme coin on the Ethereum network, is faring better than PEPE. Within the 24 hours that stretched between 4 and 5 September NEIRO gained by 87%. This disparity indicates that the liquidity which PEPE had might have moved to NEIRO. Therefore, competition from some meme coins may be contributing to PEPE’s poor showing.
Its addresses by Time Held metric also confirms that the token is underperforming. Data on IntoTheBlock shows that the Addresses by Time Held has decreased by around 20% within the previous 30 days. The decrease in Addresses by Time Held shows that some of PEPE’s previous investors are relocating their funds to competing tokens or coins. The next diagram shows the changes in Addresses by Time Held that occurred within the last 30 days. Pepe Addresses by Time Held: IntoTheBlock
As seen in the diagram, the Addresses by Time Held of traders decreased within the cited period.
Whereas some metrics show that PEPE is underperforming and may struggle to recover, whale activity shows a positive trend. Despite the negative investor sentiment that could be affecting the PEPE price a rise in whale activity may stabilize the market. During the first week of September, for instance, whales acquired 8 trillion PEPE tokens, valued at around $66 million. That helped to prevent a further price fall. PEPE Whales: Santiment
As the graph shows, there has been a rise in the amount of PEPE in the hands of whales.
Investor sentiment also has a strong effect on the performance of PEPE. Data on Santiment shows that PEPE usually responds strongly to the existing market sentiment and speculative trading. As a result, positive investor sentiment often precedes its price rise. The weighted sentiment shows the relationship between its price and market sentiment. PEPE Weighted Sentiment – Santiment
The PEPE social dominance and weighted sentiment are showing that sharp price fluctuations may continue. Therefore, traders and other investors may anticipate PEPE coin price swings.
Comparative Analysis: Pepe vs. Other Cryptocurrencies
Currently, most leading meme coins including Dogecoin, Shiba Inu, Pepe and Dogwifhat (WIF) cannot hold their values near their yearly highs. Even the emerging meme coins are performing below their expected levels. The following table shows how some of the meme coins are faring on the market. Meme Coin Performance - Lookonchain
As the table shows, most of the meme coins are performing far below their yearly highs. Therefore, it is not only PEPE which is underperforming.
Strategies for Investing in Volatile Cryptocurrencies
Since meme coins are highly price volatile as a result of various crypto market challenges investors should use the profit-taking strategy. With this strategy, the investor takes the profit once the asset’s value has risen above what he/she would have invested. To do that, the investor should establish a reasonable profit taking level when he/she opens the trade. For this strategy to be effective the trader should use technical analysis to enter and exit the trade.
Related article: Pepe Price Prediction & Forecast for 2024-2030
Risk Management Techniques for Crypto Investors
Risk management involves protecting one’s invested funds from being depleted. A trader should do several things to protect his/her investment. First, one should invest in a secure platform to prevent chances of hacking and phishing, among other nefarious activities. For example, Gate.io is one of the most secure cryptocurrency exchanges to invest with. The investor should also trade a reasonable fraction of his/her capital in an asset, such as PEPE. In addition, the investor should use stop losses and take profit orders to minimize losses and maximize gains.
Future Outlook for Pepe Cryptocurrency
The PEPE coin future is still bright due to its popularity on the market. The meme coin has already gained the trust of many investors due to its massive gains from the time it was launched. The fact that it can compete with leading cryptocurrencies like bitcoin and ETH has attracted a large community of investors. However, it is important for investors to realize that PEPE is a meme coin with not intrinsic value. Also, it is still a fairly new token on the market. Therefore Investors should take caution when investing in PEPE. At the moment, the market is still waiting for Pepe price rebound. However, for this to happen the investors should adopt suitable PEPE coin rebound strategies such as buying Pepe and holding.
Conclusion
PEPE meme coin has not been performing well within the last month. That has resulted in negative investor sentiment and a drop in short-term traders. However, hope is still alive that there will be a PEPE price rebound. An increase in whale buying activity may lead to its price resurgence. Apart from PEPE other meme coins are also facing crypto market challenges leading to poor price performance.