Pepe Coin (PEPE) price has surged 53% in a fortnight to emerge as one of the top performers in the crypto market. Against Bitcoin (BTC), the meme coin rose 55% in just a week, showcasing its strength. Despite this massive uptrend, key technical and on-chain signals hint a reversal could brewing for PEPE token.
Pepe Coin’s PEPE Token Rallies 55% Against BTC
As noted above, Pepe Coin price has had a strong comeback this week, delivering a 55% rally in a week against Bitcoin. This performance makes it one of the top-performing meme coins despite the hype surrounding Solana’s Fartcoin. With PEPE currently priced at 0.0000000001325 BTC, PEPE has flipped the 0.00000000010 BTC psychological level into a support zone.
As the PEPE bull run risks exhaustion, technical and on-chain signals flag a potential correction.
PEPE Price Tops Out, Is Reversal Next?
The PEPE/BTC chart, indexed to 100 for clarity, shows the price trend’s failure to cross the 72.22 level peak, last formed in late January 2025. As Pepe Coin weakens against BTC, the falling trend could confirm a bearish turnaround if it breaks the 61.59 support level. A confirmed breakdown with a daily closing price below 61.59 would signal a bearish reversal. The Pepe coin price prediction suggests the next potential downside target at 41.82, followed by 40.11.
Unrealized Profit Confirms Crash for Pepe Coin
From an on-chain perspective, PEPE’s Market Value to Realized Value (MVRV) ratio chart reveals strong reversal chances. MVRV data shows the average return of holders compared to the token acquisition price. Higher ratios translate to higher unrealized profits and an increased likelihood of sell-offs. The 30-day MVRV ratio stands at 25.82% after taking a drop from a dangerously high level near 40%, marked in the MVRV chart. This reflects a minor cooldown in the bullish trend through profit booking.
Also, history shows that the danger zones 1 and 2 have often signaled top formations in the past. If history repeats, PEPE price is ready to drop lower.
With the pullback, the MVRV ratio is closer to the highlighted Danger Zone 1, near 20%, a level known for profit-taking measures taken by short-term holders. Following the bull run last week, short-term holders are left with significant unrealized gains, increasing the chances of rapid sell-offs in PEPE.
Hence, the heightened MVRV readings suggest a steeper correction fueled by the exit of short-term holders.
Conclusion
PEPE’s recent surge reflects an overall growth in crypto investors’ risk appetite. However, the overlapping of technical resistance and overheated on-chain indicators warns of a correction ahead. If the PEPE/BTC price chart shows a daily closing under the 61.59 support level, a bearish reversal will be confirmed. Hence, traders may consider booking profits or adding trailing stops to closely monitor breakdowns.
Frequently Asked Questions (FAQs)
Pepe Coin has seen a surge in meme coin investor interest, leading to a 55% spike in the PEPE/BTC pair. Short-term market momentum and speculative trading have pushed the pair higher over the last week.
The 30-day MVRV ratio near 25.82% suggests short-term holders are sitting on profits. When MVRV enters the 20% Danger Zone, it often leads to increased selling pressure, potentially triggering a deeper correction.
Yes, the broader trend remains bullish for now. However, caution is warranted as overlapping resistance and profit-taking signals may result in a short-term pullback or trend reversal.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/pepe-coin-soars-55-against-bitcoin-is-a-reversal-brewing/
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