Pepe Coin ($PEPE), the meme coin sensation that captured the attention of the crypto community, is facing a challenging moment as long-term holders (LTHs) seem to be losing confidence. As on-chain data reveals key trends among these veteran holders, concerns about the token’s price trajectory are growing. Could Pepe coin be on the verge of a significant drop, or will it manage to turn the tide and head towards resistance levels? Let’s dive into the analysis to understand the current state of Pepe and the factors at play.
Pepe Coin Under Pressure: The Profit-Taking Wave
Pepe Coin, which had once enjoyed widespread popularity as part of the meme coin movement, has seen its price decline recently. At the time of writing, it trades at $0.0000090, a significant 18% drop over the past four days. Two critical on-chain metrics—Mean Coin Age and Mean Dollar Invested Age—suggest that long-term holders may be driving this downturn through profit-taking activity.
1. Mean Coin Age Decline: Long-Term Holders Cashing Out
One of the main signals of long-term holder behavior is the Mean Coin Age, a metric that measures the average age of all coins held by addresses on the blockchain. According to data from BeInCrypto, the Mean Coin Age for Pepe has declined by 1% since the beginning of October, currently standing at 300 days. This means that previously dormant Pepe tokens, which had been held for long periods, are now changing hands.
When long-term holders begin to sell, it often indicates a shift in market sentiment. These holders, who have withstood various market fluctuations, might see this moment as an opportunity to cash out their profits. This selling pressure adds to the overall downward momentum and may also trigger panic among short-term holders.
2. Falling Mean Dollar Invested Age (MDIA): Confidence Waning
Another key metric signaling the potential for further declines is the Mean Dollar Invested Age (MDIA). This metric tracks the average age of a token’s holdings based on their dollar value. Pepe’s MDIA has seen a 4% decline since the beginning of October, standing at 153 days at press time.
A falling MDIA indicates that long-term holders, who were initially more confident in the token’s future, are beginning to sell off their positions. This shift suggests that even the more established investors are becoming skeptical about Pepe’s long-term prospects. As their confidence erodes, short-term holders (STHs), often referred to as “paper hands,” may follow suit, exacerbating selling pressure and further driving the price down.
What’s Next for Pepe? Price Prediction
With long-term holders cashing out and short-term holders possibly joining in, the price of Pepe faces the risk of a sharp decline. According to Fibonacci Retracement levels, the next critical support for Pepe lies at $0.0000058, representing a 35% drop from current levels. This price level was last seen on August 5, and further selling pressure could push the coin back down to this point.
However, there is a potential for reversal if market sentiment improves, and long-term holders choose to hold onto their tokens instead of selling. If Pepe can regain momentum, it might break through resistance at $0.000012, signaling the beginning of a bullish recovery.
Conclusion: Will Pepe Holders Stay the Course?
Pepe Coin is at a critical juncture. The selling behavior of its long-term holders suggests a shift in market sentiment that could result in further declines, possibly pushing the coin down by 35% to $0.0000058. However, all is not lost for Pepe. If market confidence returns and long-term holders choose to stay invested, the coin could rally and challenge resistance at $0.000012.
In these volatile times, traders should keep a close eye on key support levels, on-chain data, and the overall market sentiment surrounding meme coins. Pepe Coin’s future remains uncertain, but its next move will likely be determined by how long-term holders react in the coming weeks. Will they continue to sell, or will they double down and bet on a recovery? Only time will tell.
