Popular meme coin Pepe (PEPE) is under significant pressure, mainly due to profit-taking activities by long-term holders (LTH). It is currently trading at $0.0000090 and has witnessed an 18% price decline over the last 4 days.
Two notable on-chain indicators show that dormant PEPE tokens previously held by LTH are starting to change hands. If this group of PEPE holders continue to sell, the meme coin could witness another double-digit decline.
Pepe long-term holder book profits
The first indicator of profit taking among long-term holders (LTHs) of Pepe is the average coin age. According to analysis by BeInCrypto, this indicator has decreased by 1% since the beginning of October and currently stands at 300.
This metric calculates the average lifetime of all coins held by an address on the blockchain. A decrease indicates that older coins are being sold or transferred, which indicates that long-term holders (LTH) are starting to liquidate their positions. This activity may be driven by profit taking or changes in market sentiment.
Read more: Pepe: a comprehensive guide to what it is and how it works
Additionally, the decline in PEPE’s Mean Dollar Invested Age (MDIA), which measures the average age of token holdings in terms of dollar value, highlights selling activity among LTHs. At press time, it stood at 153, down 4% since October 1.
A decreasing MDIA indicates that older, more established holders are selling their tokens. This signals a change in market sentiment, indicating that investors are becoming less confident in the token’s long-term prospects.
A surge in take-profit activity among an asset’s LTH is a bearish signal and signals a loss of confidence among an investor group known for weathering numerous headwinds. These changes may cause short-term holders (STH), often referred to as “paper hands,” to sell their coins.
Since STH makes up a significant portion of the asset’s circulating supply, selling STH could further exacerbate downward price pressure.
PEPE Price Prediction: August 5th Low Is Coming Soon
If selling pressure from PEPE intensifies, the coin may continue to fall. According to Fibonacci retracement figures, PEPE could fall another 35%, reaching $0.0000058, the last level reached on August 5.
Read More: Pepe (PEPE) Price Prediction for 2024/2025/2030
On the other hand, if PEPE’s LTH refrains from selling tokens and market sentiment improves, PEPE may change direction. In that scenario, the coin could begin an upward trend and attempt to break the resistance at $0.000012.
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