Pepe Coin price has been struggling recently, experiencing a decline in the past month alongside the broader crypto market downturn. However, the addition of 1.38 trillion PEPE tokens to open interest has raised questions about the potential for a price surge. This sudden influx of tokens has sparked interest in whether the meme coin could be set for a rebound.
1.38 Trillion PEPE Added to Open Interest, Is Price Rally Next?
Pepe Coin price movement has recently seen a massive spike in open interest, adding a staggering 1.38 trillion units (38.65%) to stablecoin-margined contracts. Open interest tracks the total number of outstanding buy and sell orders in the market.
Such a sharp increase in open interest often results in heightened market volatility, which could lead to significant price movements in either direction.
To gain a clearer picture of where PEPE might head next, examining on-chain data is crucial. The spot CVD and funding rates, one can discern if there’s more bullish or bearish sentiment behind the surge.
Short Term PEPE Holder Capitulate, Long Term Buying Opportunity?
The recent MVRV ratio for PEPE has revealed that holders from 90 days ago are currently facing an average loss of 41%. This downturn often triggers capitulation, where short-term holders sell their assets to avoid further losses.
Such market behavior, however, presents an opportunity for long-term investors who tend to accumulate tokens during these “capitulation zones.”
Historically, these moments have marked the beginning of bullish reversals, as seen in September 2023, when PEPE’s MVRV ratio was similarly low, leading to an impressive 1,600% rally between February and May 2024.
As short-term holders continue to sell off their positions, long-term holders have the potential to capitalize on the current market conditions.
These opportunities often arise when market sentiment is overly pessimistic and seasoned investors recognize the potential for a rebound.
Thus, as the MVRV ratio stays in negative territory, the scenario looks ripe for a potential bullish reversal in the coming months.
Pepe Coin Price Analysis: Key Levels to Watch
The price of PEPE has recently experienced fluctuations within its established value area (VA). Following a significant price surge to its all-time high (ATH) on November 5, 2024, it appears that profit-taking has caused the price to return to the VA.
As of the reporting time, the PEPE price is trading at $0.000008507, with a 6% decrease. This follows the crypto market decrease, with BTC price hovering above $95k.
The Point of Control (POC), a crucial price level, is now in focus as the price stabilizes in this region. Traders and analysts alike are closely monitoring the POC level, as it may serve as a springboard for further upward movement.
A bounce from the POC would likely target the Value Area High (VAH) as the first key resistance. If the price breaks through the VAH, the next significant milestones will be the 2025 VWAP, followed by the Q4 2024 VWAP.
The surge of 1.38 trillion PEPE tokens into open interest raises speculation about a potential price rebound. A key resistance level and bullish sentiment could drive significant price movement in the coming months
The post 1,380,000,000,000 PEPE Tokens Added to Open Interest, Is Pepe Coin Price Set to Explode? appeared first on CoinGape.
