Pepe (PEPE), the viral meme coin that captured the crypto world’s attention, is showing promising signs of price stability as short-term holders exit. This development has analysts predicting a potential breakout, especially as the coin’s price action appears less vulnerable to sudden sell-offs. Here’s a look at the latest trends influencing PEPE’s market dynamics and what might be next for the popular meme coin.
Short-Term Holders On The Decline
One of the most significant shifts in PEPE’s market structure this month is the sharp drop in short-term holders. These investors, known for holding assets for less than a month and selling at the slightest hint of profit, have seen their ranks dwindle by 21%. From a high of 23,000, the number of short-term PEPE holders has now dropped to 18,000. While their presence in the market once posed a risk of price instability, their gradual exit signals a more stable outlook for PEPE.
The exit of short-term holders could be a positive shift for the meme coin, reducing the likelihood of panic-driven sell-offs. With fewer short-term investors eager to dump their holdings, PEPE now stands a better chance of breaking through key resistance levels and sustaining its price momentum.
Long-Term Holders in Profit
In contrast to the short-term investors, PEPE’s long-term holders (LTH) appear to be sitting comfortably. The Market Value to Realized Value (MVRV) ratio—an indicator that measures the profitability of different investor groups—suggests that long-term holders are now highly profitable, with a 30% gain on average.
Long-term holders are typically more inclined to HOLD(hold on for dear life), especially when in profit, meaning they are less likely to sell off large amounts of PEPE in the near future. This adds an additional layer of price stability, as the bulk of PEPE’s ownership lies in the hands of investors with a longer-term outlook. With these players in control, PEPE could be on the verge of a bullish breakout.
PEPE’s price has surged 25% over the last two weeks, a rally that coincided with the decline of short-term holders. Currently trading at $0.00000832, the meme coin is now targeting a crucial resistance level at $0.00000986. If PEPE can flip this level into support, it could rise to $0.00001000—a significant milestone marking a six-week high.
Breaking out of this consolidation phase would likely lead to short-term profits for traders, but there are risks if the breakout fails. Should PEPE falter at its current resistance, it could face a drop back down to $0.00000632, which would invalidate the bullish outlook and wipe out recent gains.
The Road Ahead
As PEPE’s short-term holders exit the market and long-term holders remain profitable, the meme coin appears to be entering a more stable phase. The reduced influence of speculative traders means PEPE is less likely to see volatile price swings, giving it a clearer path toward breaking through key resistance levels.
Also Read: PEPE (PEPE) Set For 1000% Surge Again? Whales Accumulate As Breakout Nears In Q4 2024
However, like all meme coins, PEPE remains highly susceptible to market sentiment and external events. While the current trends suggest a potential rise, any shift in broader crypto market conditions could influence PEPE’s trajectory.
For now, though, with fewer short-term risks and a solid base of long-term investors, PEPE seems poised for a potential breakout. Keep an eye on the $0.00000986 resistance level—it may just be the key to PEPE’s next big move.
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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