The post Why PEPE’s Swift Return to $0.000010 Could Be a Pipe Dream appeared on BitcoinEthereumNews.com.

The price of Pepe (PEPE), the Ethereum-based frog-themed meme coin, seems stable today. Like many other cryptos, PEPE has endured a long period of decline. Currently, the token trades at $0.0000079, which is a 32% 30-day decrease. To erase these losses, the price has to return to $0.000010 at least. But can it? Pepe Dormant Tokens Have Come Out of Their Shell A 90-day increase in a meme coin’s Mean Coin Age (MCA) indicates that more previously dormant tokens are being moved back into circulation. MCA measures the average age of all tokens on a blockchain and provides insights into holder behavior. Typically, when MCA decreases, it signals that investors are moving their assets out of long-term storage and into cold wallets, demonstrating faith in the coin’s long-term value. However, an increase, like what’s happening with PEPE, suggests that long-held coins are being reintroduced into the market. This usually leads to heightened transaction activity and can be a precursor to sell-offs, as holders release tokens they previously held onto for a long time. Pepe 90-Day Mean Coin Age. Source: Santiment If the trend continues, the recent stability of the token could be at risk. On-chain data shows a decline in the number of addresses accumulating PEPE over the past 30 days, which is a concerning signal for short-term momentum. Typically, a rise in short-term holders suggests increased demand, often leading to price growth as more traders accumulate positions. Conversely, a reduction in short-term holders usually points to weakening demand, which can result in either stagnant price action or a decline. In PEPE’s case, if fewer short-term holders continue accumulating, this could either lead to prolonged sideways movement or further price drops, especially if dormant tokens continue to be unlocked and sold. Read more: 5 Best Pepe (PEPE) Wallets for Beginners and…

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Filed under: News - @ August 22, 2024 3:21 pm