- Despite the significant price increase, PEPE and Bitcoin’s weighted momentum has declined.
- Market indicators for both BTC and HOOK were pointing to a price correction.
The market has witnessed considerable volatility as several cryptocurrencies have shown commendable performance in the past seven days. according to Tweet From CoinMarketCap, pepe, Bitcoin [BTC], and hooked protocol [HOOK] These were the top 3 trending coins this week.
As these coins were trending, AMBCrypto looked at their social indicators.
An analysis of Santimento's charts reveals that PEPE's social volume has indeed increased in the last week. However, its weighted sentiment declined sharply, suggesting growing bearish sentiment around the token.
A similar trend was seen in the BTC graph. Although the coin’s social volume spiked on February 28th, its weighted sentiment has declined, indicating more bearish sentiment.
Source: Santiment
What's going on in terms of price?
The rise in social metrics for these coins can be attributed to their price action as it has trended on CoinMarketCap.
According to the tweet, PEPE's price has surged more than 144% in the past seven days. At the time of this writing, Memecoin was trading at $0.000004393 and had a market capitalization of over $1.85 billion.
Last week, currency outflows for the coin surged, reflecting high buying pressure. Other indicators also gave an optimistic outlook for next week.
For example, the MVRV ratio registered an increase. Moreover, its network growth also remains high, meaning more new addresses are created to transfer coins.
Source: Santiment
Things looked good for PEPE, but BTC's indicators told a different story. Last week, the price of the king of cryptocurrencies rose more than 20%.
At the time of writing, it was trading at $61,811.45. Although the coin's open interest decreased, the price skyrocketed. Every time the indicator goes down, it indicates that the trend is likely to reverse.
Additionally, after the sharp rise on February 29th, the Binance funding rate for BTC also declined slightly. This meant that derivatives investors were not actively buying the coin.
Source: Santiment
Market indicators also appeared bearish on BTC. The Relative Strength Index (RSI) is in the overbought zone, suggesting that selling pressure on the coin may increase soon.
In addition, Chaikin Money Flow (CMF) also recorded a decline. This indicates that BTC price is likely to fall within the next week.
Source: TradingView
read Bitcoin's [BTC] price prediction 2024-25
The scenario for HOOK was also similar to that of BTC, with most indicators remaining in favor of sellers. The RSI was also in the overbought zone.
Moreover, its price has touched the upper bound 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 and had a market capitalization of over $169 million.
Source: TradingView
