As the meme coin PEPE currently trades at $0.0000080, investors are eager to see if it can reach the $0.000013 mark. However, recent on-chain analysis suggests that a swift run to this target may be overly optimistic. Instead, the data indicates that a gradual retracement could be on the horizon.
Recent Performance Highlights
On September 21, PEPE reached a month-to-date high of $0.0000083, largely buoyed by bullish sentiment that prevented the price from dipping below $0.0000071 just days prior. However, on-chain metrics from Santiment reveal a critical uptick in the daily transaction volume of profits, which surged to an impressive 4.48 trillion tokens. This metric measures the number of tokens that have realized gains within a specific timeframe, providing insight into investor behavior.
A notable increase in realized gains often correlates with rising selling pressure. In PEPE’s case, the recent figure indicates that investors have locked in profits exceeding $35 million, signaling that profit-taking may introduce downward pressure on the price if this trend continues.
Holding Patterns And Market Sentiment
Further compounding the situation is the Coins’ Holding Time metric, which tracks how long investors have held onto their tokens without selling. Over the past 30 days, PEPE’s holding time has increased by 90%, a positive sign of investor confidence. However, this metric has seen a 15% decrease in the last week, suggesting a shift in sentiment and mounting selling pressure.
If profit-taking behavior persists, PEPE’s short-term bullish outlook may be jeopardized. Market participants are watching closely as these dynamics unfold.
Technical Indicators Point To Potential Pullback
From a technical analysis perspective, PEPE appeared poised to make a move toward $0.000013, representing a potential 63% increase from its current price. However, indicators such as the Ichimoku Cloud and the Balance of Power (BoP) suggest that a pullback could be imminent.
The Ichimoku Cloud, a popular technical indicator that helps determine trend direction and identifies support and resistance levels, currently shows that the cloud is positioned above PEPE’s price. This typically indicates strong resistance, making a swift ascent unlikely. Meanwhile, the BoP, which gauges the strength of buyers against sellers, has turned downward, further indicating that sellers currently hold the upper hand.
Also Read: PEPE Surges 25% As Short-Term Holders Drop 21%—Is A Breakout Imminent?
Given these conditions, PEPE’s price may see a decline, potentially dropping to $0.0000074. However, if realized gains start to decrease, there may be room for a recovery. Should this happen, PEPE could target $0.000010 before making another attempt to break through the $0.000013 resistance.
As PEPE navigates through these complex market dynamics, investors should remain cautious. The current profit-taking trend and declining holding times point to potential challenges ahead. While a target of $0.000013 remains enticing, the likelihood of a gradual retracement suggests that patience may be necessary for PEPE holders. By closely monitoring these metrics, investors can better position themselves in this volatile meme coin landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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