The popular meme coin Pepe (PEPE) is experiencing considerable downward pressure, largely due to profit-taking activities from its long-term holders (LTHs). It is currently priced at $0.0000090, reflecting an 18% drop in value over the last four days.
Two significant on-chain indicators suggest that PEPE tokens that had previously been held dormant by LTHs are now being traded. Should this segment of PEPE holders persist in selling their assets, the meme coin could face further double-digit declines.
Pepe Long-Term Holders Cash In
The first indicator of profit-taking among Pepe’s long-term holders (LTHs) is its Mean Coin Age. According to BeInCrypto’s analysis, this metric has decreased by 1% since the start of October, currently at 300.
This metric represents the average age of all coins held in blockchain addresses. A decrease in this measure implies that older coins are either being sold or transferred, indicating that long-term holders (LTHs) are starting to liquidate their investments. This movement could be motivated by profit-taking or a shift in market sentiment.
Read more: Pepe: A Detailed Guide on What It Is and How It Operates
In addition, the declining Mean Dollar Invested Age (MDIA) of PEPE, which tracks the average holding duration based on the dollar value of tokens, underscores the selling trend among LTHs. Currently at 153, it has dropped by 4% since October 1.
A declining MDIA indicates that more seasoned holders are liquidating their tokens, signaling a potential shift in market sentiment, suggesting that investors may be losing faith in the token’s long-term prospects.
The increase in profit-taking among long-term holders of an asset is typically a negative sign, reflecting a loss of confidence from a group of investors known for enduring various market challenges. This trend may also encourage short-term holders (STHs), often referred to as “paper hands,” to liquidate their holdings.
Given that STHs represent a considerable portion of an asset’s circulating supply, their selling actions could further amplify the downward pressure on the price.
PEPE Price Forecast: August 5 Low May Be Next
If the selling pressure on PEPE escalates, the token may continue to decline. Based on its Fibonacci Retracement levels, PEPE could potentially drop by an additional 35%, reaching $0.0000058 — a level that was last recorded on August 5.
Read more: Pepe (PEPE) Price Predictions for 2024/2025/2030
Conversely, if PEPE’s LTHs choose to hold onto their tokens and market sentiment improves, there is potential for PEPE to reverse its trend. In this case, the coin could initiate an upward trajectory and aim to breach resistance at $0.000012.
Disclaimer
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