Pepe (PEPE) reaches peak overvaluation: analysis
2024-09-11

On-chain data shows meme coin Pepe (PEPE) is at its most overvalued since the start of the year. This follows a whale withdrawing 4 trillion tokens worth $28.40 million from Bybit.

PEPE’s Network Value to Transaction (NVT) ratio has soared to its highest level since the beginning of the year. This metric, which compares  PEPE’s market capitalization to the value of its tokens transacted daily, currently sits at 202, having risen by 494% over the past 24 hours. 

Additionally, the negative divergence between PEPE’s price and trading volume in the past 24 hours reinforces this outlook. PEPE is trading at $0.0000071, down 4%, while its trading volume surged by 70%.

The declining Chaikin Money Flow (CMF) for PEPE further confirms reduced buying pressure. At present, the CMF, which tracks the flow of capital into and out of the market, is below zero and trending downward, signaling market weakness and increased liquidity exit.

If PEPE holders continue to remove capital from its market, the token’s value will drop to $0.0000059.

However, if market sentiment improves and demand rises, the meme coin could erase a zero and trade at $0.000010.