Against the industry-wide headwinds, PEPE price entered a 4% upswing in the early hours of Thursday, August 17. On-chain data examines how PEPE price could react if long-term holders continue to book profits.
PEPE experienced a rare rub of the green this week, scoring a 4% price gain on Thursday. With bearish long-term holders positioning to take more chips off the table, on-chain data evaluates PEPE short-term price prospects.
Bearish Long-Term Holders are Taking Chips Off the Table
Long-term holders booking profits have been the main drivers behind the recent PEPE price retracement in August. On-chain data indicates that this could impede any attempts at an early price recovery.
PEPE Mean Coin Age has been trending downward since the end of July. As illustrated below, it dropped by 29% from 56.71 on July 29 to 40.27 at the close of August 16.
Mean Coin Age estimates the average number of days coins in circulation have been spent in their current wallet addresses. A persistent drop in Mean Coin Age indicates a selling frenzy, especially among long-term investors.
If the long-term holders continue selling this week, they could mount a roadblock and trigger an early bearish reversal.
In conclusion, the long-term holders’ sell pressure could nullify the growing momentum from the bullish whales. If neither side prevails, the PEPE price trend could remain neutral in the coming days.
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Sell-Off Frenzy Could Soon Subside
After multiple weeks of holders booking profits, the most recent PEPE holders are now 6% in the red. But interestingly, the MVRV ratio indicates that they have not assumed losses greater than 16% since mid-June.
Hence, unless a significant market FUD event occurs, the sell-off could slow down significantly once PEPE approaches. 0.00000099
The Market Value Realized Value ratio evaluates the net-financial position of investors that bought PEPE over the last 30-days.
Considering that the current prices are fast approaching dysphoric levels, holders could grow unwilling to sell. If the recent historical patterns repeat, PEPE bulls will likely regroup around the $0.0000099 territory.
PEPE Price Prediction: More Downside Before Recovery
Considering the on-chain data trends analyzed above, the PEPE price could drop by another 10% before entering recovery mode.
However, the 4,520 addresses had bought 16.86 trillion PEPE at the minimum price of $0.000001. Those investors could trigger a rebound in a bid to avoid booking double-digit losses.
But, if that support level gives way, PEPE could drop well below $0.0000009.
Nevertheless, PEPE could head toward $0.000002 if the momentum flips bullish. But, as shown above, 40,920 addresses had bought 218.4 trillion PEPE for the average price of $0.0000015. They could inadvertently cause a bearish reversal if they look to book profits.
However, if that resistance level folds, PEPE could reclaim the $0.000002 target.
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Disclaimer
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