PEPE, the popular meme coin, is experiencing significant downward pressure, primarily due to profit-taking from its long-term holders (LTHs). Currently trading at $0.0000090, PEPE has seen an 18% price decline over the past four days.
Two key on-chain metrics suggest that previously dormant PEPE tokens held by LTHs are changing hands. If this trend continues, further declines could occur.
The first metric indicating profit-taking is the Mean Coin Age, which has decreased by 1% since the beginning of October, now standing at 300. This metric reflects the average age of coins held by addresses on the blockchain. A decline suggests older coins are being sold or transferred, showing that long-term holders are liquidating their positions, possibly due to profit-taking or shifts in market sentiment.
Additionally, PEPE’s Mean Dollar Invested Age (MDIA) is declining, currently at 153, which marks a 4% drop since October 1. This decrease indicates older holders are selling their tokens, which reflects a loss of confidence in the token's long-term prospects.
The surge in profit-taking among long-term holders serves as a bearish signal, demonstrating a loss of confidence among investors who typically withstand market fluctuations. This shift may influence short-term holders (STHs) to follow suit.
