🌎 Pepe Coin Sees Rebound Amid Santa Claus Rally

Pepe Coin Price Sees Rebound Amidst Santa Claus Rally

As the cryptocurrency market experienced a Santa Claus rally on Christmas Eve, the Pepe coin price joined other meme coins in a significant rebound. Pepe, the third-largest meme coin, saw a notable surge in a high-volume environment as investors bought the recent dip.

This rally coincided with Bitcoin (BTC) jumping to $98,500, and the crypto fear and greed index approaching the greed zone. Most cryptocurrencies rallied, with the market cap of all coins reaching a high of $3.60 trillion.

Pepe Coin Performance and Indicators

Pepe coin had a 24-hour volume of $2.2 billion, while the futures open interest rose for the third consecutive day, reaching a high of $151 million. This significant increase in trading volume and open interest indicates a growing interest in the coin.

The Market Value to Realized Value (MVRV-Z score) indicator, widely regarded as an accurate predictor of tops and bottoms, shows that Pepe has become highly oversold. The MVRV value has dropped to 1.28, a level not seen since November, when the coin staged a strong rally to an all-time high of $0.00002830.

Contrarian Case for Pepe Coin

There are signs that speculators have capitulated and exited their trades, with the number of active, new, and zero balance addresses dropping by over 20% in the last seven days. The active addresses ratio has dropped to 1.34%, its lowest level in over a month. Most Pepe price breakouts happen when the ratio is falling.

Pepe Coin Price Analysis

The daily chart shows that the Pepe coin price peaked at $0.00002830 earlier this month and then suffered a harsh reversal. It dropped below the important support level at $0.00001713, the upper side of the cup and handle pattern that formed between May and November.

While the current rebound may be a sign of a potential breakout, it may also be part of a bearish flag chart pattern, a popular downward continuation sign. Therefore, there is a risk that the coin will resume the downward trend once the Santa Claus rally ends.

A complete bullish breakout will be confirmed when the coin rises above the psychological point at $0.000025. Investors should exercise caution and conduct thorough research before making any investment decisions.