Pepe Coin Price Rebounds: Has the Crash Ended?

The price of Pepe Coin has recently rebounded as part of a broader market recovery, joining other meme coins in the Santa Claus rally that took place on Christmas Eve. This rebound occurred as Bitcoin (BTC) rose to $98,500, and overall market sentiment improved, pushing the crypto market capitalization to a high of $3.60 trillion.

The Pepe Coin surge was supported by a 24-hour trading volume of $2.2 billion, with futures open interest climbing to $151 million, its highest level since December 30. A key factor contributing to the rebound is the Market Value to Realized Value (MVRV) indicator, which shows Pepe Coin was highly oversold, with its MVRV-Z score dropping to 1.28. This level is seen as an indication of a potential price bottom, with similar readings in November preceding a rally to an all-time high of $0.00002830.

However, despite the recent uptick, there are signs that the price increase may not be sustainable. Speculative activity appears to have slowed, as evidenced by a 20% drop in active, new, and zero balance addresses over the past week. Additionally, the active address ratio has fallen to 1.34%, its lowest level in over a month. Historically, Pepe’s price breakouts have occurred when this ratio is low, suggesting that the recent surge might not signal a long-term trend.

On the technical side, Pepe’s price peaked earlier in the month at $0.00002830 before experiencing a sharp reversal. The price dropped below the key support level of $0.00001713, which is part of the cup and handle pattern formed between May and November. Although it is attempting to reclaim the 50-day moving average while staying above the 100-day moving average, the rebound might be a dead cat bounce or part of a bearish flag pattern, which typically signals further downside.

In conclusion, while the recent rally has provided hope for Pepe Coin, it is still unclear if the price crash is over. There remains a risk that the price could resume its downward trend after the Santa Claus rally concludes. A full bullish breakout would only be confirmed if the coin rises above the $0.000025 mark.