This PEPE Holder Cohort Is The Reason Price Is Struggling To Reclaim $0.00002
July 31 2024 - 2:30PM
NEWSBTC
PEPE bulls have encountered challenges in their attempts to push up
the meme cryptocurrency’s price over the past week. Notably, PEPE
has experienced a decline of approximately 4% in the last 24 hours
alone, with a more substantial drop of 6.5% over the course of the
past seven days. The selling sentiment surrounding PEPE has
increased significantly since the middle of July. Throughout this
period, the meme coin has struggled to break above resistance at
$0.0000126, facing repeated failures each time it approached this
critical price point. A deeper analysis of market behavior
reveals that this prevailing selling sentiment can be largely
attributed to a notable shift in the composition of PEPE investors.
There has been a strong increase in the number of short-term
holders, accompanied by a corresponding decrease in long-term
holders. Jump In Short-Term Holders According to on-chain
data from IntoTheBlock, short-term PEPE holders have increased
noticeably in the past 30 days. This observation is derived from
IntoTheBlock’s Balance by Time Held metric, which follows the
variation over time of the balance in wallet addresses and groups
them into holders, cruisers, and traders, depending on their
average time. Related Reading: Institutional Investors Show
Interest In Cardano, Triggering 300% Surge Notably, this metric
shows that the balance in the wallets belonging to the trader
cohort has increased by over 31% in the past 30 days. This is
interesting because the trader cohort is made up of those who
generally hold their assets for less than a month before selling.
The behavior of this cohort suggests a shift towards more
speculative trading, as these investors are looking to capitalize
on quick market movements rather than committing to long-term. On
the other hand, the balance in cruiser addresses have fallen by
6.24% in the same timeframe. Cruisers are those addresses that hold
their tokens for between one to twelve months before selling. This
decrease in the balance of cruisers suggests many long-term holders
have been selling their PEPE tokens in the past 30 days. What Does
This Mean For PEPE? The influx of short-term holders is creating a
more volatile environment for PEPE. Currently, they account for 20%
of the entire circulating supply of PEPE. As these investors tend
to buy and sell quickly based on market fluctuations, they are more
likely to create frequent price swings. This increased volatility
is making it challenging for PEPE to maintain a stable upward
trajectory. Related Reading: Analyst Says ETH Price Will Struggle
As Spot Ethereum ETFs Expectations Crash At the time of writing,
PEPE is trading at $0.00001135. Although the crypto is still up by
42% from a 2-month low of $0.000007975 recorded on July 5, the
upward trajectory has been stalled by the activity of short-term
holders. PEPE now finds itself trading around a two-week
significant support of $0.00001133. A bounce above this price point
would enable PEPE to resume its uptrend and continue approaching
the $0.00002 threshold. Featured image created with Dall.E, chart
from Tradingview.com
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