Cryptocurrencies including Pepe are experiencing significant price increases amidst the Christmas rally, which occurred on Christmas Eve.
Rise of Pepe and Other Cryptocurrencies
Pepe, the third-largest meme cryptocurrency, surged in a high-volume environment as investors bought the recent dip. This rally happened as Bitcoin jumped to $98,500, and the crypto fear and greed index approached the greed zone. The market cap of all cryptocurrencies tracked by CoinGecko hit $3.60 trillion.
MVRV-Z Analysis and Its Significance
Pepe's price increase was also influenced by signs indicating it was the cheapest since November 5 according to the Market Value to Realized Value (MVRV-Z) indicator. This indicator is regarded as one of the most accurate for predicting market tops and bottoms. The MVRV value dropped to 1.28, signaling it was highly oversold. The last time Pepe had this value was in November, leading to a strong rally to a high of $0.00002830.
Status of Active Addresses and Future Predictions
Another factor for Pepe was the data showing that the number of active, new, and zero balance addresses dropped by over 20% in the past seven days. The active addresses ratio fell to 1.34%, its lowest level in over a month. Such a decline often signals an imminent change in Pepe's price. It's important to consider the risk of a resumption of the downtrend once the Christmas rally ends.
While the current market conditions are favorable for the rise of Pepe and other meme cryptocurrencies, there is a possibility of subsequent price drops as the market situation evolves.
