The price of PEPE continues to please its holders, as this meme coin not only leads the altcoin surge but also marked a new all-time high in the past 24 hours.
However, this might trigger a downturn as investors appear ready to sell.
PEPE Investors Show Signs of Selling
Following the rise in PEPE's price, the meme coin seems poised to witness significant sell-offs as investors reap substantial profits. According to the Network Realized Profit/Loss index, the overall increase has shown notable signals over the past month.
Realized profits indicate that investors are selling, and this is likely to increase now that the meme coin has reached a new ATH. This appears to have saturated the upward momentum and could lead to substantial selling.
PEPE Network Realized Profits. Source: Santiment
Secondly, the Market Value to Realized Value (MVRV) ratio also suggests profit-taking. The MVRV ratio tracks investor profits and losses. With PEPE's 30-day MVRV at 38%, indicating profitability, selling could follow. Historically, meme coins have undergone corrections at MVRV levels between 15% and 36%, marking it as a danger zone. PEPE has surpassed this level, indicating a stronger potential for profit-taking. If this occurs, the altcoin could see a drop below key support levels.
PEPE MVRV Ratio. Source: Santiment
PEPE Price Prediction: Awaiting a Drop
At the time of writing, this meme coin shows no signs of decline, but considering the above indicators, it may happen soon. The most likely outcome would be a drop to $0.00001251, marking the 78.6% Fibonacci retracement level. Strong selling pressure could extend this decline, and PEPE might drop to the 61.8% Fib line at $0.00001146. This line is known as a support floor for the bull market, so losing it would erase some recent gains.
PEPE Price Analysis. Source: TradingView
However, if PEPE rebounds off this support level, the meme coin could have a chance to restart its recovery. The same occurred in mid-May before PEPE's price surged as it has now. This could invalidate the bearish argument.
