Popular meme coin Pepe (PEPE) is under significant pressure, primarily driven by the profit-taking activity of its long-term holders (LTHs). It currently trades at $0.0000090, witnessing an 18% price decline over the past four days.
Two notable on-chain metrics reveal that previously dormant PEPE tokens held by its LTHs have begun to change hands. If this cohort of PEPE holders continues to sell, the meme coin may witness another double-digit decline.
Pepe Long-Term Holders Book Profits
The first metric indicating profit-taking among Pepe’s long-term holders (LTHs) is its Mean Coin Age. BeInCrypto’s analysis shows that this metric has declined by 1% since the beginning of October, currently standing at 300.
This metric calculates the average age of all coins held by addresses on the blockchain. A decline indicates that older coins are being sold or transferred, suggesting that long-term holders (LTHs) are beginning to liquidate their positions. This activity may be driven by profit-taking or a shift in market sentiment.
Read more: Pepe: A Comprehensive Guide to What It Is and How It Works
Furthermore, PEPE’s falling Mean Dollar Invested Age (MDIA), which measures the average age of a token’s holdings based on their dollar value, highlights the selling activity among its LTHs. At 153 at press time, it has noted a 4% decline since October 1.
A decreasing MDIA suggests that older, more established holders are selling their tokens. It signals a change in market sentiment, indicating that investors are becoming less confident in the token’s long-term prospects.
The surge in profit-taking activity among an asset’s LTHs is a bearish signal, indicating a loss of confidence among a cohort of investors known for weathering numerous headwinds. This shift may prompt short-term holders (STHs), often called “paper hands,” to sell their coins.
Since STHs hold a significant percentage of an asset’s circulating supply, their selling can further exacerbate downward pressure on the price.
PEPE Price Prediction: August 5 Low on the Horizon
If PEPE’s selling pressure intensifies, the coin could continue its decline. According to its Fibonacci Retracement readings, PEPE may fall an additional 35%, reaching $0.0000058 — a level last seen on August 5.
Read more: Pepe (PEPE) Price Prediction 2024/2025/2030
On the other hand, if PEPE’s LTHs refrain from selling their tokens and market sentiment improves, PEPE could reverse course. In that scenario, the coin may initiate an upward trend and attempt to break resistance at $0.000012.
Disclaimer
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