Over the past week, PEPE bulls have grappled with substantial obstacles in their efforts to elevate the price of the meme cryptocurrency. In the last 24 hours alone, PEPE has sustained a decline of roughly 4%, with a more significant drop of 6.5% over the previous seven days.
The selling sentiment around PEPE has notably intensified since mid-July. During this period, the cryptocurrency has repeatedly struggled to surpass the resistance level at $0.0000126, encountering consecutive failures as it neared this crucial price mark.
Detailed market analysis indicates that this prevailing selling sentiment can be attributed to a significant shift in the composition of PEPE investors. Specifically, there has been a pronounced increase in the number of short-term holders, coupled with a corresponding decrease in long-term holders.
Data from IntoTheBlock highlights a noticeable rise in short-term PEPE holders over the past 30 days. This insight stems from the Balance by Time Held metric, which tracks the variations in wallet balances over time and categorizes them into holders, cruisers, and traders based on their average holding duration.
Intriguingly, the balance in wallets belonging to the trader cohort has surged by over 31% in the past 30 days. This cohort consists of individuals who typically hold assets for less than a month before selling. The behavior of this group suggests a shift towards speculative trading, with investors aiming to profit from rapid market movements rather than committing to long-term investment strategies.
Conversely, the balance within cruiser addresses has diminished by 6.24% within the same period. Cruisers are those who hold tokens for between one to twelve months before selling. This decline implies that many long-term holders have been liquidating their PEPE tokens over the last month.
The influx of short-term holders is fostering a more volatile environment for PEPE. They currently account for 20% of the entire circulating supply. Given their propensity to rapidly buy and sell based on market fluctuations, they are likely to induce frequent price swings. This heightened volatility is complicating PEPE’s ability to maintain a stable upward trend.
At present, PEPE is trading at $0.00001135. Although the cryptocurrency remains up by 42% from a two-month low of $0.000007975 recorded on July 5, its upward momentum has been hindered by the activity of short-term holders. Currently, PEPE is hovering around a significant two-week support level of $0.00001133. A rebound above this point could enable PEPE to resume its upward trajectory and approach the $0.00002 benchmark.
Featured image created with DALL·E, chart from TradingView.com.
