After shedding a large part of its value for some time, PEPE could be set for a significant price increase this month. Currently, the frog-themed meme coin is trading at $0.0000074.
If the anticipated trends play out as expected, PEPE might move closer to the peak it last reached in May. This on-chain analysis explores the factors that could drive this potential price recovery.
On-chain Data Reveals Bullish Signs for Pepe
According to on-chain data from Santiment, the Market Value to Realized Value (MVRV) Long/Short Difference dropped from 55% to 36% between August 24 and 31. Decreasing values of this metric suggest that short-term holders will realize more profits than long-term holders if they sell at the current price.
When this lingers, it implies that the market could be shifting toward a bear market. Increasing values, on the other hand, indicate that long-term holders are realizing more profits.
For PEPE’s price, the MVRV Long/Short Difference quickly turned toward 39.87%. This increase aligns with the latter interpretation mentioned above. Should this continue, the token could kick off another round of the bull market, which appears to have taken a break.
Read more: 5 Best PEPE Wallets for Beginners and Experienced Users
Pepe MVRV Long/Short Difference. Source: Santiment
Furthermore, data from the same analytic platform indicates that PEPE might have reached its bottom. This conclusion is drawn from the social dominance metric, which tracks how much a cryptocurrency is being discussed.
Typically, when social dominance is very high, it signals a local price top. However, in PEPE’s case, the metric has dropped to a level that historically precedes a significant price rebound. If history repeats itself, the meme coin could be poised for a bullish run.
Pepe Social Dominance. Source: Santiment
PEPE Price Prediction: $0.000010 Before This Month Ends?
Based on the daily chart, the potential rebound depends on maintaining a price above $0.0000070. If it stays above this level, the meme coin could recover some recent losses.
Historically, dropping below this point has led to a decline between $0.0000058 and $0.0000063. However, if buying pressure increases, the price could rise toward $0.0000087 and possibly revisit the $0.000010 resistance level. The fact that PEPE has broken above the descending triangle supports this outlook.
Read more: PEPE Price Prediction 2024/2025/2030
Pepe Daily Analysis. Source: TradingView
However, this forecast might not come to pass if the token slips below $0.0000070. Should this happen, the cryptocurrency might slide to $0.0000063.
The post PEPE Price Hints at Strong Gains, Bull Market Return This September appeared first on BeInCrypto.