- PEPE and Bitcoin weighted sentiment fell despite massive price increases.
- Both BTC and HOOK market indicators suggested a price correction.
The market witnessed quite a bit of volatility as several cryptos showed commendable performance in the last seven days. According to a tweet from CoinMarketCap, PEPE, Bitcoin [BTC], And Crochet protocol [HOOK] were the top three trending coins of the week.
Since these coins were popular, AMBCrypto looked at their social statistics.
Our analysis of Santiment’s chart showed that PEPE’s social volume has indeed increased over the past week. However, weighted sentiment fell sharply, indicating that bearish sentiment around the token was increasing.
A similar trend was also noticed in the chart of BTC. The coin’s social volume peaked on February 28, but its weighted sentiment fell, indicating more bearish sentiment.
Source: Santiment
What’s on the price front?
The rise in these coins’ social metrics, which made them popular on CoinMarketCap, can be attributed to their price actions.
According to the tweet, the price of PEPE has increased by more than 144% in the past seven days. At the time of writing, the memecoin was trading at $0.000004393 with a market cap of over $1.85 billion.
The currency’s outflows peaked last week, due to high buying pressure. Other metrics also seemed optimistic for the week ahead.
For example, the MVRV ratio recorded an increase. Moreover, network growth also remained high, meaning more new addresses were created to transfer the coin.
Source: Santiment
While things looked good for PEPE, BTC’s statistics told a different story. Over the past week, the price of the king of crypto rose by more than 20%.
At the time of writing, it was trading at $61,811.45. The coin’s open interest fell while its price rose. Whenever the measure goes down, it indicates that the possibility of a trend reversal is high.
Moreover, after peaking on February 29, BTC’s Binance funding rate also fell slightly. This meant that derivatives investors were not actively buying the currency.
Source: Santiment
Market indicators also seemed bearish for BTC. The Relative Strength Index (RSI) was in the overbought zone, indicating that selling pressure on the currency could increase soon.
Moreover, the Chaikin Money Flow (CMF) also recorded a decline. This indicated that there is a good chance that the price of BTC will fall in the coming week.
Source: TradingView
Read Bitcoins [BTC] Price prediction 2024-25
HOOK’s scenario was also similar to BTC’s as most indicators remained in favor of the sellers. The RSI was also in the overbought zone.
Moreover, the price has reached the upper limit of the Bollinger bands, indicating that investors may witness a price correction due to high selling pressure. At the time of writing, HOOK was trading at $1.32 with a market cap of over $169 million.
Source: TradingView