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PEPE price has wobbled 42% from its 2024 peak to hit $0.000006 on March 19, but on-chain data trends suggest the rally may not be over yet.
The memecoin markets have witnessed significant pullback since March 19. Tokens like PEPE and Dogewifhat (WIF) and Book of memes (BOME) all rode triple-digit gains to historic peaks over the past week.
PEPE network continues grow amid price dip
PEPE market capitalization surged above $3.5 billion as price raced to $0.00001 on March 14, to become the second-largest memecoin ecosystem on the Ethereum network behind Shiba Inu (SHIB).
However, as PEPE erased another zero, a profit-taking frenzy sent prices spiraling 42% towards $0.00006 on March 19.
However, PEPE’s dominant price performance in the last 30-days has evidently enhanced its market position. Despite the intense sell pressure, PEPE continues to attract new users, a move that could catalyze an early recovery phase.
Santiment’s amount of holders metric is a proxy for measuring the number of active user on a cryptocurrency network. It tracks the number of funded wallets currently holding units of the underlying asset.
The chart below shows that PEPE network welcomed 29,100 new users for the month, as the total holders grew from 159,100 addresses to 188,200 addresses between Feb 29 and March 19.
An increase in funded wallets is a clear indication of growing retail adoption and fresh capital flowing into the ecosystem. In affirmation, a closer look at the chart shows how PEPE recent price rallies have coincided with noticeable spikes in new funded wallets.
This poses a major bearish signal considering that 2,400 of the new users joined the network, between March 14 to March 19 amid the 42% price decline. When a network is attracting a significant number of new users during a market dip, it suggests that strategic new-entrants may be stepping in to buy the dip.
Forecast: PEPE price stay above $0.000006 ?
With PEPE price having dipped 42% below the market top, and falling below the 20-day SMA price, strategic traders looking to buy-in at the bottom could consider perfect timing to enter the fray.
The growing demand from the 29,100 newly-funded PEPE addresses suggests that the market forces are well-aligned for PEPE price to hold a steady support level above $0.000006.
But for the bulls to regain momentum, PEPE price must first scale the initial resistance at $0.000008.
IntoTheBlock’s global in/out of money data which groups all existing PEP holders by their entry prices also affirms this outlook.
It shows that 3,910 addresses that acquired 37,900 ETH at the maximum price range of $0.000008 could mount a major sell-wall as PEPE approaches their break-even point.
But if PEPE price can scale that roadblock, the rally could pick up steam and head towards $0.00001.
Still, the PEPE bears could remain in control if PEPEloses the $0.00006 support. However, this currently appears unlikely, considering the looming support buy-wall.
At that range, 21,000 investors that bought 62.9 trillion PEPE at the average price of $0.000006 could make frantic purchases to avoid falling into net-loss positions.
This article first appeared at crypto.news
