The PEPE price is down more than 45 percent from its monthly high of $0.00000183 recorded on July 3. On-chain data indicates that investors abandoning PEPE for Dogecoin (DOGE) could thwart any chance of an early price recovery. Here are the details…
PEPE investors switch to DOGE
As Cryptokoin.com also reported, PEPE made a surprise comeback at the end of June, rising to $0.0000018 on July 3rd. However, after an unimpressive performance in recent weeks, investors have begun to give up on PEPE for the rising DOGE. On-chain data indicates that investors started leaving the PEPE network when the price of Dogecoin started to rise in mid-July. The Santiment chart below shows that DOGE price (yellow line) on July 12 increased 25 percent from $0.065 to $0.082 on July 26.
Interestingly, over that time frame, PEPE Daily Active Addresses (green line) dropped from 5,086 on July 14 to 1,999 active users recorded at the close of July 25. This translates to a massive 61 percent reduction in PEPE network usage. Not surprisingly, the price of PEPE has dropped by 45 percent over the past three weeks. Daily Active Addresses evaluates changes in network activity by tracking the number of unique wallet addresses that transact daily. A sustained decline means the foundation is losing demand.
Market share is also falling
PEPE active users started dwindling around July 14, just 2 days after the start of the Dogecoin price rally. This shows that memecoin fans are leaving the PEPE network to go for Dogecoin. As further proof that investors are selling PEPE to buy Dogecoin, Network Growth data reveals that the former are struggling to attract new users. As shown below, PEPE Network Growth has been down since the DOGE price rally started on July 14. Accordingly, between July 14 and July 25, Network Growth fell by 73 percent from 1,703 to 463 new addresses.
Network Growth measures the rate at which a Blockchain network attracts new users. As observed above, a sustained decline for a long period of time means that the base token may struggle to attract sufficient demand in the following weeks. In addition, he highlights that PEPE is losing market share to its competitors in the memecoin world. So, if Dogecoin price continues to rise, PEPE’s recovery will likely continue to be difficult.
What are the expectations for the meme coin price?
If investors selling PEPE to buy Dogecoin continue on this trajectory, the price of PEPE could add another zero and drop below $0.0000010. However, according to IntoTheBlock’s Break-Even Price breakdown data, the $0.0000015 resistance could be an important area to reclaim if more upsides are expected. 32,500 wallets had purchased a total of 84.8 trillion PEPE tokens at an average price of $0.0000010. If they desperately buy more tokens to avoid falling into a net loss position, this could trigger a price rebound.
However, if they continue to sell PEPE to buy other meme coins like Dogecoin, the price of PEPE could drop below $0.0000010. Still, if PEPE can reclaim $0.0000020, the bulls could reverse this bearish narrative, according to analyst Ibrahim Ajibade. However, as seen above, some of the 62,500 addresses holding 199.3 trillion tokens at an average price of $0.0000020 may force the decline. However, if the bulls push this resistance level aside, PEPE price could rally higher towards $0.0000030.
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