PEPE is starting to experience more excitement and traction as the market becomes heated up.
- PEPE bulls have not been operating at their full potential, but that could soon change. Spot and derivatives demand register uptick, which could lead to new highs.
Pepe [PEPE] has performed quite well so far in November, but it has underperformed compared to Dogecoin [DOGE]. However, this could signal that there might be better days ahead for the frog-themed memecoin.
PEPE is one of the top performing memecoins of 2024, but its performance in the second half of the year has been underwhelming.
For starters, PEPE failed to push into new 2024 highs, unlike DOGE, which has seemingly been defying gravity. The latter pulled off a 206% rally from its November lows to its recent high, while the former rallied by 92%.
PEPE could benefit if…
The top coins in their categories have been enjoying robust gains, and this goes for Dogecoin as much as it does for Bitcoin [BTC].
However, liquidity rotation may commence soon, paving the way for the likes of PEPE to enjoy heavy liquidity inflows.
PEPE may already be on track to experience more upside and a potential new high before the end of 2024. Its Open Interest soared to $214.89 million in the last 24 hours, which was its highest historic levels.
Source: Coinglass
This surge suggests that the memecoin is currently the most appealing it has ever been in the derivatives segment. But what about demand in the spot segment?
IntoTheBlock’s transaction data revealed that PEPE had just over 12,100 transactions in the last 24 hours. The memecoin’s transaction count has been on the rise this month, and was at a 3-month high at the time of writing.
Source: IntoTheBlock
The correlation with the price suggested that the surge in transaction count was mostly buying pressure rather than sell pressure.
This observation also confirmed that the memecoin has been gaining more appeal in the market this month, an outcome that could potentially lead to a strong bullish outcome.
On-chain data also revealed that whale activity was on the rise since the start of November.
This was evident by the surge in large holder inflows from as low as 1.81 trillion PEPE on the 2nd of November to 16.33 trillion PEPE at press time.
Source: IntoTheBlock
Although large holders have been accumulating, the same category appeared to also be holding PEPE back from more gains.
Large holder outflows also registered significant outflows, from 1.6 trillion tokens on the 1st of November to 15.46 trillion tokens as of the 12th of November.
The balance between large holder inflows and outflows was still in favor of the bulls as at the time of writing. However, this could change soon, depending on the prevailing market sentiment.
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