PEPE: Here’s Why Traders Can Avoid Jumping on the Memecoin Bandwagon

Memecoin Pepe (PEPE) has swept the cryptocurrency market. The token has successfully dethroned several memecoin veterans. But how long will it be before PEPE joins the ranks of cryptocurrencies taking the throne?

According to LunarCrush data, PEPE is one of the top three trending cryptocurrencies across all social dimensions. While Bitcoin (BTC) remains number one, memecoin rises to number two. On the social front, PEPE is followed by Ethereum (ETH), which ranks third.

Despite its impressive social performance, PEPE’s on-chain activities tell a slightly different story. Although the number of holders was at an all-time high at the time of publication, PEPE volumes have declined. According to data from intelligence platforms, the number of PEPE holders is 113 thousand. However, over the past four days, the volume has decreased to 322.04 million at the time of writing. A drop in volume does not bode well for memecoin.

Additionally, sentiment-weighted has been on the decline since early May, and is currently at 0.984 at the time of writing. This also doesn’t bode well for frog-themed tokens.

Although PEPE made it onto CoinMarketCap’s trending cryptocurrency list and ranked first, the press time scenario was not in favor of memecoin. PEPE’s seven day performance does not bode well for memecoin. Furthermore, according to the chart below, PEPE’s Relative Strength Index (RSI) indicates a lack of buying pressure.

The RSI is hovering below the neutral line at 46.65 at the time of writing. Furthermore, the Moving Average Convergence Divergence (MACD) indicator illustrates the neutrality of PEPE. At the time of writing, the signal line (red) is above the MACD line (blue).

This suggests there is no significant bullish or bearish pressure on PEPE at the time of publication.

In addition to the bearish narrative mentioned above, Santiment’s data shows that the supply of PEPE on the exchange was 131.19 trillion as of May 16. An increase in exchange supply may indicate that investors and traders are interested in trading their PEPE for other cryptocurrencies.

Given the scenario, the question remains: Will PEPE recover, or will the frog return to his pond? The answer can be found in PEPE’s seven-day performance, as memecoin traded 14% lower in the last seven days to trade at a hit price of $0.0000016771.