As a seasoned crypto investor with battle-scars from numerous market cycles, I must admit that observing the rollercoaster ride of PEPE has been both exhilarating and exhausting. The past week has seen its share of ups and downs, leaving me questioning whether this meme coin is more akin to a wild stallion or a runaway Ferris wheel.
PEPE supporters have faced difficulties trying to boost the value of the meme-based cryptocurrency recently. In fact, just in the last day, PEPE has seen a dip of around 4%, and over the past week, it has dropped by approximately 6.5%.
Over the past month or so, there’s been a noticeable surge in positive opinions about PEPE, the meme coin. Despite numerous attempts, it hasn’t been able to surpass the resistance at $0.0000126, encountering setbacks every time it came close to this key price level.
An in-depth examination of market trends indicates that the widespread selloff might primarily stem from a significant change in PEPE‘s investor base. This transformation is marked by a surge in the quantity of short-term investors, coinciding with a drop in the number of long-term investors.
Jump In Short-Term Holders
Over the last month, there’s been a significant rise in short-term PEPE holders as indicated by on-chain data from IntoTheBlock. This trend is based on IntoTheBlock’s Balance by Time Held metric, which categorizes wallet addresses into holders, cruisers, and traders according to their average time holding the balance.
As a researcher, I’ve noticed an intriguing trend: the average balance in the wallets of our trader cohort has surged by over 31% within the last 30 days. This is particularly noteworthy given that this group traditionally holds their assets for less than a month before selling. This pattern seems to indicate a shift towards more speculative trading among these investors, as they appear to be aiming to capitalize on swift market fluctuations rather than focusing on long-term investments.
Instead, there’s been a 6.24% drop in the amount of PEPE token holdings categorized as “cruisers” within the recent timeframe. These are the addresses that keep their tokens for between one month and a year before selling. This decrease in cruiser balances implies that numerous long-term PEPE token holders may have been offloading their tokens over the past 30 days.
What Does This Mean For PEPE?
As a researcher studying the PEPE market, I’ve noticed an increasing presence of short-term investors who collectively hold about 20% of the total circulating supply. Due to their propensity to react swiftly to market changes and frequently buy or sell, they are contributing significantly to the overall volatility of PEPE. This heightened volatility is proving to be a hurdle in PEPE’s pursuit of consistent, long-term growth.
Currently, PEPE is being traded at approximately 0.00001135 USD. Despite this, it’s important to note that PEPE has seen a 42% increase from its 2-month low of 0.000007975 USD on July 5. However, the surge has been slowed down due to the actions of short-term investors. As it stands, PEPE is hovering near a significant support level from the past two weeks at around 0.00001133 USD. If PEPE manages to bounce back above this price point, it could potentially resume its uptrend and move closer to the $0.00002 mark.
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2024-07-31 22:34