Could bitcoin (btc) Head for an Imminent Pullback? Some crypto market observers believe the answer could be hidden in the price action of a frog-themed memecoin.
In an October 27 post on X (formerly Twitter), Onchain Capital co-founder and crypto Jokes Host Ran Neuner suggested that memecoin Pepe (PEPE) is a strong indicator of the cryptocurrency market hype.
If you want to know when a pullback will occur, just watch $PEPE. It is literally an index of when the market is overheating. When people are confident enough to go there and it works, that’s the signal to get out. It works all the time. pic.twitter.com/vMcqiddHwp
– Ran Neuner (@cryptomanran) October 26, 2023
“If you want to know when a pullback will occur, just watch PEPE. “It is literally an index that indicates when the market is overheating,” Neuner said.
“When people are confident enough to go there and it works, that’s the signal to get out. It always works.”
pepe recently witnessed a gain of over 100%, growing from $0.00000064 on October 20 to a high of 0.00000134 on October 27. Around the same time as Pepe peaked, bitcoin had already begun to slide down from a recently reached yearly high.
Neuner’s theory has been shared by other cryptocurrency traders in the past. On September 23, RTB trader Alex told his 60,000 followers that he had begun using Pepe as a reliable metric for impending short-term declines.
This $PEPE The bomb is another indicator of the coming btc?src=hash&ref_src=twsrc%5Etfw” rel=”noopener noreferrer nofollow” target=”_blank”>#btc dump.
I speak from experience, you can check past price movements.
Pumping coins like $PEPE, $DOGE, $XRP, $IMX, $LINK It always indicates the bloodbath, let’s see how it goes this time. pic.twitter.com/piseCxRiqD
—Alex RT₿ (@rutradebtc) September 22, 2023
However, the theory has also attracted its fair share of skeptics, who claim that the data have not always supported the theory.
Related: btc price pullback after $35,000? bitcoin Funding Rates Turn ‘Extremely Positive’
Dubai-based trader Reetika told Cointelegraph that Pepe’s recent rally was largely due to bullish news about changes to the team and the fact that it would burn additional tokens and was not necessarily a sign of excess. broader confidence in the market.
6.9T $PEPE Chips worth ~$6,000,000 have been burned. https://t.co/aN5LRUFz8u
A new team of advisors has been hired to guide Pepe forward. Uses of the remaining 3.79T tokens attributed to the original team’s CEX multi-signature wallet for strategic partnerships and marketing… pic.twitter.com/JN3ssvH0XL
-Pepe (@pepecoineth) October 24, 2023
As TradingView’s comparative data shows, Pepe’s price is often closely correlated with that of bitcoin, which could make it difficult to use memecoin as an indicator.
Meanwhile, Reetika suggested considering Solana’s SOL as a potentially more reliable predictor.
“So far, SOL has been a very good indicator of movements. It has broken through resistances at least a day ahead of btc/eth during this entire move. I have been using it practically to estimate the advantages,” he said.
Reetika, however, clarified that SOL is also not a perfect indicator but performed well in the most recent move.
Similarly, market commentator and avid cryptocurrency poster Poordart told Cointelegraph that Pepe is probably not the best metric for gauging the future price action of big companies like bitcoin.
In Poordarts’ view, Pepe is still too new to the market to have “real lasting value” as a reliable metric for measuring bitcoin price movements with any meaningful precision.
Magazine: Beyond crypto: Zero-Knowledge Proofs Show Potential from Voting to Finance
