The meme-inspired cryptocurrency, Pepe (PEPE), has shown some interesting signs lately. On April 7th, a significant amount of PEPE tokens left exchanges, with the total supply outside exchanges reaching a staggering 242.54 trillion. This exodus suggests that holders are becoming more bullish on PEPE’s future, potentially leading to a price increase.
Historically, when tokens move away from exchanges, it can indicate lower selling pressure. Investors who transfer their holdings to wallets might be planning to hold them long-term, reducing the immediate supply available for sale. This optimism is further reflected in PEPE’s recent price rise of 7.93% within 24 hours.
However, the picture isn’t entirely rosy. Despite the token exodus, sentiment data from Santiment paints a different story. The “Weighted Sentiment” metric, which gauges overall investor confidence, has taken a dip and is nearing negative territory. This suggests that despite the token movement, some investors might still be hesitant about PEPE’s long-term prospects.
Another factor to consider is the Mean Coin Age (MCA). This metric measures how long, on average, PEPE tokens have been held. A high MCA, currently at 32.25 days for PEPE, indicates frequent movement of older tokens. This could act as a stumbling block for a significant price hike, as it suggests short-term trading rather than long-term investment.
Also Read: Memecoin Market: Underdogs Surge 78% While Doge & Shiba Inu Consolidate – Will PEPE Lead the Pack?
However, there’s a silver lining. If the movement of older tokens ceases, it could lead to price stabilization and potentially erase recent losses. Additionally, the recent increase in trading volume suggests growing interest in PEPE. If this volume sustains alongside a price climb, it could overpower the short-term negative sentiment and propel PEPE towards $0.0000075.
This price increase could solidify PEPE’s position within the top 50 cryptocurrencies (currently ranked 46th), and with further momentum, even a jump into the top 40 isn’t out of the question.
The coming days will be crucial for PEPE. Can it overcome the conflicting signals and sustain its price rise? Only time will tell if the token exodus translates to long-term investor confidence and a flourishing future for Pepe.
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