PEPE investors switch to Dogecoin (DOGE): let's figure out why
Date: 2023-07-28 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
The price of PEPE is down more than 45% from the local highs of $0.00000183 recorded on July 3. The readings of key on-chain metrics hint that the chances of a quick rebound are slim
At the end of June, PEPE showed impressive growth, reaching $0.0000018 by July 3. However, by the end of the month, the rally came to naught, and investors turned their attention to another memecoin - DOGE.
The decline in PEPE network activity coincided with the Dogecoin rally
On-chain data indicates that investors have begun to get rid of PEPE amid the rise in the price of Dogecoin. The Santiment chart below shows that between July 12 and July 26, the price of DOGE (yellow line) increased by 25%, and the number of daily active PEPE addresses (green line) decreased from 5086 to 1999.
A sharp decline in activity expectedly led to a 45% drop in the price of the memecoin.
Users lose interest in the hype meme coin
An additional confirmation that investors are selling PEPE to buy Dogecoin is the data on the growth of the network. As shown in the graph below, between July 14 and July 25, Network Growth decreased by 73%, from 1703 to 463 new addresses.
A steady decline over a long period means that it will be difficult for the underlying asset to attract sufficient demand in the near future. It also highlights that PEPE is losing market share to its competitors. If the price of Dogecoin continues to rise, the recovery will drag on for a long time.
PEPE Prediction: Bears Could Add Another 0 to Price
If investors continue to sell, PEPE could fall below the $0.0000010 mark. The 32,500 addresses that bought a total of 84.8 trillion tokens at this price could provide support to the memecoin and trigger a rebound. However, if they prefer it to other coins — for example, DOGE — the hype cryptocurrency will face a further fall.
In case of consolidation above the level of $0.0000020, control over the situation will pass to the bulls. However, they will first have to overcome the resistance of 62,500 wallets that have purchased 199.3 trillion tokens and can exit positions at the break-even point.
