Could PEPE memecoin be the new indicator in Bitcoin?
Some cryptocurrency market commentators believe the interest in memecoin PEPE is a harbinger of a BTC crash, but not everyone is convinced.Could PEPE memecoin be the new indicator in Bitcoin? NEWS
Could there be a pullback in Bitcoin soon? Some cryptocurrency market commentators believe the answer may lie in the price action of the frog-themed memecoin PEPE.
In a post shared on X (formerly Twitter) on October 27, Onchain Capital co-founder and Crypto Banter host Ran Neuner suggested that memecoin Pepe is a strong indicator of the senseless excitement in the crypto market and said:If you want to know when the pullback will happen, follow PEPE. It's literally an index that shows when the market is overheating.A bullish arrival when everyone is confident about the rise is always a working exit signal.Pepe recently experienced an increase of over 100 percent. While Pepe was traded at $0.00000064 on October 20, this figure peaked at $0.00000134 on October 27. During the same time period, Bitcoin began to decline from its annual peak.Neuner's theory has been shared by other crypto investors in the past. On September 23, trader Alex RTB told his 60,000 followers that he had started using Pepe as a reliable indicator of upcoming short-term declines.
However, there are also traders who claim that the data does not always support the theory.Could Bitcoin and Pepe theories be true?
Dubai trader Reetika told Cointelegraph that Pepe's recent rise is largely due to the exciting news about changes to the team and the fact that additional tokens will be burned, which is not a sign of confidence in the market.
As comparative data from TradingView shows, Pepe's price is often correlated with the price of Bitcoin, making it difficult to use memecoin as an indicator.
Comparative price action of PEPE and BTC. Source: TradingView
Reetika said that Solana could be used as a more reliable indicator and added:SOL has been a very good indicator of movements so far. It broke resistance at least a day before BTC/ETH throughout the entire move. I use this to predict upward movements.Reetika concluded by explaining that SOL is not a perfect indicator either, but it performed well in its last move. Similarly, market commentator and crypto journalist Poordart told Cointelegraph that Pepe is probably not the best indicator for predicting future price movements of major cryptocurrencies like Bitcoin.According to Poordart, Pepe is far from a reliable benchmark for accurately predicting Bitcoin's price movements and is too new to the market to have any "real lasting value."
Some cryptocurrency market commentators believe the interest in memecoin PEPE is a harbinger of a BTC crash, but not everyone is convinced.Could PEPE memecoin be the new indicator in Bitcoin? NEWS
Could there be a pullback in Bitcoin soon? Some cryptocurrency market commentators believe the answer may lie in the price action of the frog-themed memecoin PEPE.
In a post shared on X (formerly Twitter) on October 27, Onchain Capital co-founder and Crypto Banter host Ran Neuner suggested that memecoin Pepe is a strong indicator of the senseless excitement in the crypto market and said:If you want to know when the pullback will happen, follow PEPE. It's literally an index that shows when the market is overheating.A bullish arrival when everyone is confident about the rise is always a working exit signal.Pepe recently experienced an increase of over 100 percent. While Pepe was traded at $0.00000064 on October 20, this figure peaked at $0.00000134 on October 27. During the same time period, Bitcoin began to decline from its annual peak.Neuner's theory has been shared by other crypto investors in the past. On September 23, trader Alex RTB told his 60,000 followers that he had started using Pepe as a reliable indicator of upcoming short-term declines.
However, there are also traders who claim that the data does not always support the theory.Could Bitcoin and Pepe theories be true?
Dubai trader Reetika told Cointelegraph that Pepe's recent rise is largely due to the exciting news about changes to the team and the fact that additional tokens will be burned, which is not a sign of confidence in the market.
As comparative data from TradingView shows, Pepe's price is often correlated with the price of Bitcoin, making it difficult to use memecoin as an indicator.
Comparative price action of PEPE and BTC. Source: TradingView
Reetika said that Solana could be used as a more reliable indicator and added:SOL has been a very good indicator of movements so far. It broke resistance at least a day before BTC/ETH throughout the entire move. I use this to predict upward movements.Reetika concluded by explaining that SOL is not a perfect indicator either, but it performed well in its last move. Similarly, market commentator and crypto journalist Poordart told Cointelegraph that Pepe is probably not the best indicator for predicting future price movements of major cryptocurrencies like Bitcoin.According to Poordart, Pepe is far from a reliable benchmark for accurately predicting Bitcoin's price movements and is too new to the market to have any "real lasting value."
