Pepe at Risk of Price Drop as Holders Shift

Recent shifts in the behavior of Pepe (PEPE) token holders are raising concerns about the coin’s price stability. A decrease in the Mean Dollar Invested Age (MDIA) and lower trading volumes suggest that PEPE may face challenges ahead. The price is currently struggling to break through the 50-day Exponential Moving Average (EMA), signaling a potential downturn. However, increased activity from large investors, known as whales, could potentially reverse this trend and push the price higher.

Despite a sluggish start to the month, Pepe’s price saw a notable increase, but the bullish momentum has weakened in the last 24 hours, casting doubt on the sustainability of its recent rally. According to key on-chain metrics, the coin might struggle to maintain its upward trend. The decline in MDIA and reduced trading volume are key indicators pointing to potential weaknesses in the market.

One key metric signaling potential trouble is the Mean Dollar Invested Age (MDIA), which measures how long a cryptocurrency has stayed in the same wallet. A rising MDIA typically means investors are holding onto their tokens, which is a positive sign. However, a dropping MDIA indicates that previously inactive tokens are now being moved, a potential sign of a sell-off.

Recent data shows a decrease in PEPE's MDIA, suggesting that more tokens are being traded. This increased circulation could mean that investors are starting to sell, putting more tokens into the market and potentially driving prices down.

Another worrying sign is the drop in trading volume. Normally, when trading volume rises along with the price, it strengthens the uptrend. However, when trading volume falls after a price increase, it suggests that the momentum may not last. The current decline in volume indicates less participation from investors, which could lead to a weakening of the price.

The daily chart reveals that PEPE’s price is struggling at the 50-day Exponential Moving Average (EMA), a key indicator of market direction. Trading below this level suggests the possibility of a bearish trend. If the price continues to hover below this EMA, further declines could be on the horizon.

However, the price remains above the 20-day EMA, a shorter-term indicator. The appearance of a red candlestick raises concerns that PEPE might drop below this level, which could trigger additional selling.

Adding to the uncertainty is that PEPE has yet to break out of the descending triangle pattern forming on the chart, a typically bearish signal. If the price fails to break above this pattern, further declines could follow.

Despite the bearish signals, there is still hope for a price recovery if large investors, known as whales, begin accumulating PEPE in significant amounts. Whale activity can greatly influence the market, sometimes reversing trends and driving prices higher. If whales start buying PEPE, the token could break out of the descending triangle pattern and see a potential price increase.

The recent changes in PEPE holder behavior, combined with declining trading volumes and resistance at key technical levels, suggest that the meme coin could be facing a downturn. However, the situation could change if whales step in to buy large amounts of the token. The coming days will be crucial in determining which direction PEPE’s price will take.