Pepe (PEPE), a popular meme coin, is currently under pressure due to profit-taking activities by its long-term holders (LTHs). The coin has seen an 18% decline in value, trading at $0.0000090. Certain on-chain metrics suggest that previously inactive PEPE tokens are being sold, potentially leading to further declines.
Two significant metrics, Mean Coin Age and Mean Dollar Invested Age (MDIA), have decreased, indicating that older, established holders are liquidating their positions. A 1% decrease in Mean Coin Age and a 4% drop in MDIA since October 1 suggest a shift in market sentiment with increased selling activity among LTHs.
This surge in profit-taking is typically seen as bearish, reflecting a lack of confidence among committed investors, which might influence short-term holders to sell, leading to increased selling pressure. If the selling pressure heightens, PEPE might experience a 35% price drop to $0.0000058, according to Fibonacci Retracement readings.
Conversely, if market sentiment improves and PEPE's LTHs stop selling, the coin could reverse its course, potentially breaking the resistance level at $0.000012. The market's direction hinges on the actions and sentiment of LTHs and the broader investor outlook.
