What Next for PEPE Price After 85% Recovery?
Pepe (PEPE) surprised investors in late June with a resounding 85% price surge in the second half of the month. However, on-chain data now indicates mixed signals, leaving investors wondering what’s next for PEPE price in the coming days.
PEPE Long-term Holders are Booking Profits
Although PEPE price has dominated memecoin price charts in recent weeks, some holders are now taking advantage of the high prices to book profits. On Monday, PEPE recorded an astronomical spike in Age Consumed, reaching 365 trillion on July 3.
Age Consumed evaluates the trading sentiment among long-term investors by calculating the number of recently moved coins multiplied by the number of days spent in their previous wallet addresses. Sudden spikes in Age Consumed during a price surge indicate that many investors are offloading their holdings.
Historical data shows that the last time PEPE Age Consumed rose to this level was on May 19, which was quickly followed by a 30% price correction. If this pattern repeats itself, PEPE holders can anticipate another downward price correction in the next few weeks.
Network Activity Has Slowed Down this Week
Despite the recent price gains, PEPE has actually registered a significant decline in user activity this week. This suggests that the price surge is mostly driven by the activities of bullish speculators rather than underlying economic activity.
Analyzing the PEPE Daily Active Addresses data, it is evident that user activity has dropped by 24% while the price increased by 16% between June 28 and July 4. When the Daily Active Addresses (7d) increases during a price rally, it indicates that price gains are mostly driven by market speculation.
Unless user activity increases significantly to match the price uptrend, PEPE could experience a retracement in the coming weeks.
PEPE Price Prediction: Another Retracement Below $0.0000010
Considering the factors highlighted above, it is likely that the bears will trigger a retracement below $0.0000010 for the PEPE price. However, the 13,670 investors who bought 136.09 trillion at the minimum price of $0.0000010 could provide some support.
If that support level caves, the PEPE price could drop to $0.0000008 again. Alternatively, if PEPE can attract enough user activity, the price rally could continue towards $0.000002. The 35,430 investors who bought 80.09 trillion PEPE tokens at the maximum price of $0.000002 could pose a potential resistance level.
In summary, the PEPE price outlook remains uncertain. On the one hand, long-term holders are booking profits, and network activity has slowed down. On the other hand, bullish speculation could provide support for the price. Ultimately, investors should closely monitor the on-chain data and user activity to gauge the potential direction of the PEPE price in the coming weeks.