Could PEPE rally after weeks of silence?

• PEPE has struggled to see significant price movement after hitting an all-time high in May.
• The increasing adoption rate and low MVRV ratio indicate that an uptrend could be on the horizon.
• A single PEPE outflow from Binance worth $14.7 million lends credence to signs of bullish expectations.

PEPE is down nearly 1% on Tuesday, as key on-chain indicators indicate the meme coin could be poised for a rally after weeks of relative sideways movement.

PEPE to come out of week of silence

PEPE has fallen more than 34% from its all-time high of $0.000017 on May 27. Over the past month, it has struggled to establish a clear price trend, with a mix of several short-term moves to the upside and downside.

According to data from IntoTheBlock, PEPE’s NVT ratio of 56.25 also corresponds to the investor uncertainty displayed in its price movement.

The Network Value to Transaction (NVT) ratio helps predict whether a project is overvalued or undervalued. A spike in NVT signals overvaluation and a potential correction, while a dip in NVT is considered undervaluation and a bullish sign.

An NVT of 56.25 shows that investors have mixed feelings about PEPE.

PEPE’s trading volume has also been declining for over a week, reaching $56.23 million on June 29 before recovering slightly to $81.29 million on Monday.

Low volume often indicates exhaustion in both bull and bear markets. This is also evident in the number of PEPE trades by size. Trades > 10,000 are down about 38% in the last 30 days.

Given that most analysts predict that the bull cycle has not yet reached its peak, the current horizontal trend in PEPE could be a good buying opportunity in anticipation of a rally.

Although PEPE has remained relatively quiet, its adoption rate has increased significantly in recent days, reaching 58.49% on Monday, its highest level in the past year. Additionally, PEPE’s daily active addresses have increased by over 105% in the past seven days.

The increased adoption rate and daily address count while prices are relatively stagnant also indicate that PEPE may be gearing up for a rally.

PEPE, MVRV and DAA Awards

PEPE’s 30-day market value to realized value (MVRV) ratio, at -9% according to Santiment data, also helps indicate where prices may go. The ratio indicates that all addresses that purchased the meme coin in the last 30 days have suffered an average loss of 9.29%. Investors view an MVRV ratio below one as a potential buying opportunity. As we can see from the chart above, PEPE’s 30-day MVRV has remained below one for nearly a month.

Notable whale activity today also supports bullish expectations for PEPE. According to Whale Alerts, someone moved 1.1 trillion PEPE worth about $14.7 million from Binance to an unknown wallet.

In the short term, PEPE could look to reclaim the $0.000013 price level – where investors purchased over 34 trillion PEPE tokens – before tackling resistance at $0.00001377.

PEPE/USDT 4-Hour Chart

A break of the $0.000010 support level would invalidate the bullish thesis.

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