PEPE’s recent price increase of 10.87% has been overshadowed by a notable signal that could disrupt its upward trend. This signal suggests the possibility of a sudden sell-off or profit-taking, which could limit the potential for a 60% price increase. Despite trading at $0.0000080 and facing challenges in reaching $0.000013, investors may anticipate a swift rally. However, on-chain analysis indicates a more gradual retracement is likely.
One concerning factor is the distribution of Pepe holders. On September 21, the token reached a monthly high of $0.0000083 after avoiding a slide below $0.0000071 five days earlier. However, data from Santiment reveals that Pepe’s daily on-chain transaction volume in profits jumped to 4.48 trillion on Monday. This metric tracks the number of tokens involved in realized gains within a specific period. An increase in realized gains often leads to a price decrease due to rising selling pressure. For PEPE, this means investors have taken profits worth over $35 million at current prices, suggesting that some are cashing out and potentially introducing downward pressure on the price if profit-taking continues.
Another indicator of a potential downturn is the Coins Holding Time metric, which shows how long investors have held tokens without selling them. On a 30-day horizon, PEPE’s Coins Holding Time has seen a significant 90% increase. However, over the past seven days, this ratio has decreased by 15%, indicating selling pressure for the meme coin. If this trend persists, PEPE’s bullish price outlook might not materialize in the short term.
From a technical standpoint, PEPE’s price initially showed readiness to move towards $0.000013, representing a 63% increase from current levels. However, the Ichimoku Cloud and Balance of Power (BoP) suggest a potential pullback. The Ichimoku Cloud, which measures trend direction and support and resistance levels, currently sits above PEPE’s price, indicating potential resistance. Additionally, the BoP, which gauges the strength of buyers compared to sellers, has turned downward, suggesting sellers have the upper hand. Based on these indicators, PEPE’s price could potentially drop to $0.0000074.
Nevertheless, if realized gains start to decrease, PEPE’s price may have room for appreciation once again. In such a scenario, the meme coin’s short-term target could be around $0.000010 before another attempt at $0.000013.