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PEPE Long-Term Holders Take Profits: What’s Next for Price?

2 mins
Updated by Ryan Boltman
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In Brief

  • PEPE's price experienced a 4% upswing on August 17, despite bearish long-term holders booking profits, impacting short-term price.
  • The downtrend in Mean Coin Age suggests that long-term investors booking profits could nullify the growing momentum. 
  • Despite the sell-off, PEPE holders could grow unwilling to sell as prices approach dysphoric levels, potentially triggering a rebound.
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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. 

PEPE Holders Book Proftis | Mean Coin Age, August 2023
PEPE Holders Book Proftis | Mean Coin Age, August 2023 | Source: Santiment

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. 

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

PEPE Price Prediction | MVRV Ratio, August, 2023
PEPE Price Prediction | MVRV Ratio, August 2023 | Source: Santiment

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. 

PEPE Price Prediction | GIOM data, August 2023
PEPE Price Prediction | GIOM data, August 2023 | Source: IntoTheBlock

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

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Ibrahim Ajibade
Ibrahim Ajibade Ademolawa is an experienced On-chain research analyst who began his career in Commercial Banking. He has worked with several Web3 startups and financial institutions —analyzing technical concepts and spectacular events that link the DeFi and TradFi worlds. He holds a Bachelors’ Degree in Economics and is currently pursuing an MSc. in Blockchain & Distributed Ledger Technologies.
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