PEPE Bulls Facing Challenges
PEPE bulls have been struggling to push up the meme cryptocurrency’s price recently. In the past week alone, PEPE has seen a 4% decline in its price, with a more significant drop of 6.5% over the last seven days, creating a challenging situation for investors.
Selling Sentiment on the Rise
Since the middle of July, there has been a notable increase in the selling sentiment surrounding PEPE. The meme coin has been unable to break above resistance at $0.0000126, facing repeated failures each time it has tried to surpass this critical price point.
Analysis of Market Behavior
A deeper analysis of market behavior reveals that the prevailing selling sentiment can be attributed to a shift in the composition of PEPE investors. There has been a significant increase in the number of short-term holders, accompanied by a decrease in long-term holders, which is impacting the price of the cryptocurrency.
Jump In Short-Term Holders
According to on-chain data from IntoTheBlock, short-term PEPE holders have noticeably increased in the past 30 days. The Balance by Time Held metric from IntoTheBlock shows that the balance in trader wallets has increased by over 31% in the same timeframe, indicating a shift towards more speculative trading.
- This increase in short-term holders is creating a more volatile environment for PEPE, as these investors tend to buy and sell quickly based on market fluctuations.
- On the other hand, the balance in cruiser addresses, which hold tokens for one to twelve months, has fallen by 6.24% in the same period, suggesting that long-term holders are selling their PEPE tokens.
Impact on PEPE
The influx of short-term holders is leading to increased volatility for PEPE. Currently, these investors account for 20% of the circulating supply, contributing to frequent price swings that make it challenging for PEPE to maintain a stable upward trajectory.
- PEPE is currently trading at $0.00001135, still up 42% from a 2-month low recorded on July 5.
- The cryptocurrency is facing significant support at $0.00001133, and a bounce above this price point could help PEPE resume its uptrend towards the $0.00002 threshold.
Hot Take: The Future of PEPE
The increasing number of short-term holders and the selling sentiment surrounding PEPE are creating a challenging environment for the meme cryptocurrency. While the price has seen fluctuations, the future trajectory of PEPE remains uncertain as investors navigate the volatile market conditions.
Sources: IntoTheBlock
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