The number of active addresses of PEPE has risen steadily over the past week. Social dominance has also risen. Together, they reflect the enthusiasm of network users and the growth of their number.

  • PEPE has almost vertically risen in the past week

  • Conditions may be overextended northward, but a deep pullback is not warranted

Like many altcoins in the market, Pepe [PEPE] has seen significant gains over the past week. However, the biggest gainers among Dogecoin [DOGE] and Shiba Inu [SHIB] are meme coins. FLOKI’s gains over the past week are almost equal to PEPE’s.

AMBCrypto’s previous analysis of PEPE’s price action drew attention to the fact that the token’s next big hurdles are located at $0.0000011 and $0.0000014. The former has flipped to support, will the latter follow the same route?

Overhead of put orders could hinder PEPE’s progress

The cryptocurrency market can be very volatile, and memecoins are especially so at times. PEPE has surged, gaining 102% in the past seven days and counting. On October 23, after breaking out of a lower high of $0.00000085, the market structure on the daily chart turned bullish.

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At press time, the Relative Strength Index (RSI) showed strong bullish momentum. The Chaikin Money Flow (CMF) showed +0.23, highlighting strong capital inflows into the market. The On-Balance Volume (OBV) started trending higher after trading sideways for the previous two months.

Together, they reflect that the recent rise in PEPE is brought about by real demand. A 1-day bearish order block in the $0.0000014 area could lead to a rejection for the bulls. A pullback to the former resistance at $0.00000101 could bring about a buying opportunity.

On-chain indicators suggest long-term holders may be taking profits

The number of active addresses has risen steadily over the past week. Social dominance has also moved higher. Together, they reflect the activeness of network users and their growth in numbers. However, the average age of coins has dropped dramatically. The 30-day market capitalization to realized value (MVRV) ratio has also climbed to its highest level since early May.

The sharp rise in MVRV means that long-term holders may sell their PEPE tokens for profit. The decline in average coin age suggests that many holders have started to transfer their tokens. Therefore, a drop to $0.000001 or lower is possible.