Recent on-chain data analyses have raised red flags for popular meme cryptocurrencies Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE). Despite their recent price gains, these digital assets may be headed for a correction.
Key metrics paint a concerning picture. Active address data, which reflects user engagement, shows a downward trend across all three coins. Dogecoin, in particular, has seen a significant drop in active wallets since its recent peak.
The Market Value to Realized Value (MVRV) ratio, a tool used to gauge whether an asset is overvalued, currently indicates that all three meme coins may be priced above their fair value. This situation often precedes a market correction.
Adding to these concerns, transaction volumes for DOGE, SHIB, and PEPE have recently hit multi-week lows. Reduced trading activity can be a sign of waning investor interest and may foreshadow price instability.
As of the latest data, all three coins are trading slightly down. While meme coins have shown resilience in the past, current metrics suggest caution may be warranted for short-term investors.
Crypto enthusiasts and traders would be wise to keep a close eye on these on-chain indicators, as they could provide valuable insights into the meme coin market’s near-term direction.
Meme Coins Face Potential Downturn: On-Chain Metrics Raise Concerns
