Here\u2019s what the different on-chain indicators from Santiment have to say about whether Pepe Coin could see another pump soon or not.<\/p>\n
PEPE has been one of the hottest topics around the cryptocurrency market recently, thanks to the explosive growth that the meme coin has enjoyed. Between the end of last month and the 5th of May, the coin saw its price rise by an extraordinary 1,200%.<\/p>\n
The uptrend, however, ended there and the cryptocurrency has been sharply plunging since then. According to Santiment<\/a>, the on-chain analytics firm\u2019s \u201csocial dominance<\/a>\u201d indicator signaled this top in advance.<\/p>\n Social dominance tells us what percentage of the discussions happening on social media related to the top 100 cryptocurrencies by market cap are talking about a given coin.<\/p>\n As the below chart shows, Pepe\u2019s social dominance rose to very high values just before the top took form earlier in the month.<\/p>\n\n Whenever social dominance hits high levels, it\u2019s a sign of euphoria among investors, which is something that has historically led to top formations for cryptocurrencies.<\/p>\n Santiment notes that the indicator still has a value of about 5%, meaning that 5% of all discussions related to the top 100 assets involve the meme coin currently.<\/p>\n \u201cSeeing it get down to the 1-2% range would be a good sign that traders are beginning to stray away and look for pumps from other altcoins,\u201d the firm explains.<\/p>\n The active addresses<\/a> metric, which measures the total number of unique addresses taking part in some transaction activity on the blockchain, also saw a spike just before the top.<\/p>\n\n When this indicator has a high value, it means a large number of investors are making trades right now. The price generally becomes more likely to get volatile when the metric shows such a trend.<\/p>\n From the chart, it\u2019s visible that the active addresses indicator has come down in value for PEPE in the last few days, which means that the market activity has calmed down.<\/p>\n An interesting trend is also visible in the data for the supply of the largest Pepe Coin holders, as the below graph displays.<\/p>\n\n These humongous holders had been accumulating while the rally had been going on, but right as the top took form, they started shedding coins from their wallets.<\/p>\n This cohort has continued to sell since then as PEPE\u2019s value has gone downhill. \u201cIf you start seeing these lines moving up again, there is a much larger probability of PEPE going for its 2nd round of pumping (though probably a more minor one),\u201d explains Santiment.<\/p>\n One positive sign for the asset, however, may be that the trading volume<\/a> has rebounded recently after having declined since the top (just like the other metrics). <\/p>\n \u201cAll in all, meme coins have to be taken for what they are. They\u2019re controlled by speculation and crowd expectations,\u201d says the analytics firm. \u201cIn these fresh, new assets that fit this description, you\u2019ll likely want to watch when the crowd gets too emphatic that one price direction is going to happen.\u201d<\/p>\n At the time of writing, Pepe Coin is trading around $0.000001251, down 37% in the last week.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n Here\u2019s what the different on-chain indicators from Santiment have to say about whether Pepe Coin could see another pump soon or not.<\/p>\n PEPE has been one of the hottest topics around the cryptocurrency market recently, thanks to the explosive growth that the meme coin has enjoyed. Between the end of last month and the 5th of May, the coin saw its price rise by an extraordinary 1,200%.<\/p>\n The uptrend, however, ended there and the cryptocurrency has been sharply plunging since then. According to Santiment<\/a>, the on-chain analytics firm\u2019s \u201csocial dominance<\/a>\u201d indicator signaled this top in advance.<\/p>\n Social dominance tells us what percentage of the discussions happening on social media related to the top 100 cryptocurrencies by market cap are talking about a given coin.<\/p>\n As the below chart shows, Pepe\u2019s social dominance rose to very high values just before the top took form earlier in the month.<\/p>\n Whenever social dominance hits high levels, it\u2019s a sign of euphoria among investors, which is something that has historically led to top formations for cryptocurrencies.<\/p>\n Santiment notes that the indicator still has a value of about 5%, meaning that 5% of all discussions related to the top 100 assets involve the meme coin currently.<\/p>\n \u201cSeeing it get down to the 1-2% range would be a good sign that traders are beginning to stray away and look for pumps from other altcoins,\u201d the firm explains.<\/p>\nPEPE Price<\/h2>\n
The Memecoin\u2019s On-Chain Metrics Have Been Down Since The Top<\/h2>\n