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 (PEPE) price has had a strong comeback this week, delivering a 55% rally in a week against Bitcoin (BTC). This performance makes it one of the top-performing meme coins despite the hype surrounding Solana’s Fartcoin.

At the same time, the meme coin is eyeing a potential correction as key technical and on-chain signals hint at a reversal brewing for PEPE token. Currently, PEPE is trading at 0.0000000001325 BTC after flipping 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 Trend Fails to Cross Key Level

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.

As the PEPE risks losing strength against BTC, investors should consider booking the bull run gains before the crash.

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, signaled by the MVRV reading approaching 40%. 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, around 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, boosting the chances of swift sell-offs in PEPE.

Hence, the heightened MVRV readings suggest a steeper correction fueled by the exit of short-term holders.

Concluding Thoughts

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 price falls below the 61.59 support level, a bearish reversal will be confirmed.

Therefore, traders may consider booking profits or adding trailing stops to closely monitor any breakdowns.

Frequently Asked Questions (FAQs)

1. Why is Pepe Coin outperforming Bitcoin right now?

2. How does MVRV ratio affect Pepe Coin’s price outlook?

3. s the Pepe Coin trend still bullish?