PEPE’s major shareholders have sold off a significant portion of their holdings over the past 30 days. On-chain data suggests this memecoin is undervalued and could rebound following the event.
While many investors in the market see the upcoming launch of a spot Ethereum (ETH) ETF as a positive factor, AMBCrypto found that large holders of PEPE appear to hold a different view.
We found this information by analyzing the address’s holdings data. This metric divides addresses into different segments based on the value of the assets they hold and shows whether they are accumulating or selling assets.
As of now, AMBCrypto has noticed a significant drop in the number of addresses holding PEPE tokens worth between $100,000 and $10 million. This drop means these addresses sold some of their tokens over the past 30 days.
This is surprising, especially considering that PEPE is one of the top-ranked memecoins on the Ethereum blockchain. Therefore, it is expected that large holders in the memecoin space will send the same bullish signals as other bullish markets.
If the situation remains the same when the spot Ethereum (ETH) ETF goes live, the price of PEPE could rise as a result. However, it may be challenging to sustain gains unless buying pressure increases.
As of now, the price of PEPE is $0.0000087. This means that it has fallen 49.27% from its all-time high on May 27.
According to the above analysis, further distribution could drag down the price, causing the token to potentially fall 55% from its highs. However, once the Ethereum ETF is launched, the token may perform well on the charts.
Signals are given by the market value to realized value ratio (MVRV), which provides insights into the profitability of the market. When the MVRV ratio rises, it means that the market value exceeds the realized value and cryptocurrency holders have an incentive to sell. On the contrary, if the ratio falls, it means that the realized value is much higher than the market value.
Currently, PEPE’s 30-day MVRV ratio is -10.90%, indicating that its recent demand dynamics are poor. However, a negative MVRV may encourage market participants to continue holding the token, suggesting that the memecoin may be undervalued relative to current market conditions.
Therefore, if buying pressure intensifies later, we could see prices attempt to revisit the May highs.Despite the bearish signs ahead of the ETF launch, some analysts believe that memecoin will benefit from this development.
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