This Is What Stands Between PEPE and a New All-Time High  

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In Brief

  • PEPE is struggling near critical resistance levels, with profit-taking risks looming due to a high MVRV ratio in the danger zone.
  • Active investors in profit signal potential selling pressure, raising the chance of short-term corrections and hindering a breakout.
  • PEPE needs to breach $0.00001369 for a rally, but failure could lead to consolidation between $0.00000989 and $0.00001369.
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PEPE price, a popular meme coin, has been struggling to secure a crucial support level that could potentially trigger a rise to its all-time high of $0.00001725. However, the coin faces significant resistance and the threat of profit-taking, which could hamper its upward momentum. 

The meme coin is currently hovering near critical levels, with the possibility of either a breakout or a continued struggle beneath its resistance points.

PEPE Faces Profit-Taking

PEPE’s Market Value to Realized Value (MVRV) Ratio at 33% currently sits in the danger zone. The area between 13% and 47% typically signals a heightened risk of corrections. This is because, at these levels, a large number of investors are in profit, which could lead to widespread selling. When profits become abundant, investors often move to lock in gains, putting downward pressure on the price.

This potential selling pressure is something PEPE investors should keep in mind, as corrections become more likely when the MVRV ratio reaches these levels. If profit-taking accelerates, it could further solidify the resistance, making it harder for the meme coin to break through.

Read more: Pepe: A Comprehensive Guide to What It Is and How It Works

PEPE MVRV Ratio.
PEPE MVRV Ratio. Source: Santiment

PEPE’s macro momentum also shows concerning signals. Historical data on active addresses indicates that 37% of participating investors are currently in profit. This percentage is worrisome because when more than 25% of investors are in the green, the chances of profit-taking rise sharply. These conditions, combined with the MVRV ratio, suggest that a significant portion of the market may be preparing to sell, limiting PEPE’s ability to gain ground.

This strong presence of profitable investors reinforces the likelihood of short-term corrections. If enough holders choose to sell, PEPE could face consolidation instead of the breakout many investors are hoping for.

PEPE Active Addresses by Profitability.
PEPE Active Addresses by Profitability. Source: IntoTheBlock

PEPE Price Prediction: All-Time High Is Away

PEPE is currently trading at $0.00001118, sitting just under a local resistance level of $0.00001146. While breaking this resistance is possible, a rise beyond $0.00001369 appears unlikely, given current market conditions. PEPE’s struggle against this resistance has persisted for four months, and overcoming it will be no easy feat.

The resistance at $0.00001369 is the key level preventing PEPE from forming a new all-time high above $0.00001725. With numerous investors positioned to take profits, breaking through this barrier will be a challenge. If PEPE fails to surpass $0.00001369, it will likely remain consolidated between this resistance and $0.00000989 for the foreseeable future.

Read more: Pepe (PEPE) Price Prediction 2024/2025/2030

PEPE Price Analysis.
PEPE Price Analysis. Source: TradingView

However, a rally could follow if PEPE manages to breach $0.00001369 under bullish circumstances. This breakout would invalidate the current bearish outlook and potentially reignite optimism among investors.

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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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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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