The world of memecoins continues to be a rollercoaster ride, and Pepe (PEPE) is no exception. Recent on-chain data reveals a surge in tokens moving out of exchanges, potentially signaling a bullish sentiment among investors. However, conflicting indicators cast a shadow of doubt on the sustainability of this upward trend.
Pepe Soars Out Of Exchanges, Suggesting Investor Confidence
A significant development for PEPE is the movement of a large number of tokens away from exchanges. According to Santiment, a blockchain analytics platform, the supply of PEPE outside exchanges reached a staggering 243 trillion on April 7th. This sharp rise compared to March 12th indicates a potential decrease in selling pressure.
Source: Santiment
Price Recovery, Rising Volume Hint At Potential Upswing
Further bolstering the bullish case for PEPE is the recent price increase. Over the last 24 hours, the memecoin has experienced a nearly 10% surge, suggesting a potential recovery from a recent slump.
In addition to the observed price fluctuations and projected price range for Pepe, it’s worth noting the significant increase in trading volume surrounding the cryptocurrency. This surge in trading activity not only reflects a heightened level of engagement within the Pepe community but also suggests growing interest from external investors and traders.
Bitcoin is now trading at $71.879. Chart: TradingView
The uptick in trading volume serves as a key indicator of market sentiment and could potentially serve as a catalyst for further price gains. Historically, increased trading activity has been associated with periods of price appreciation, as it signals a greater level of market participation and liquidity. In turn, this heightened liquidity can attract new buyers to the market, further bolstering demand and potentially driving prices higher.
Investor Sentiment Tells A Different Narrative
However, not all signs point towards a clear path to success for PEPE. While the token movements suggest some bullishness, a crucial metric paints a contrasting picture. The Weighted Sentiment, which reflects investor sentiment towards PEPE, has recently declined.
This could indicate a weakening of investor confidence and potentially foreshadow a decrease in demand for the memecoin. If this metric continues to fall, it could invalidate the current bullish bias surrounding PEPE, making a significant price hike less likely.
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