2 Reasons Why PEPE Long-Term Holders Might Trigger a 35% Price Drop

PEPE Mean Coin Age. Source: Santiment

Furthermore, PEPE’s falling Mean Dollar Invested Age (MDIA), which measures the average age of a token’s holdings based on their dollar value, highlights the selling activity among its LTHs. At 153 at press time, it has noted a 4% decline since October 1.

A decreasing MDIA suggests that older, more established holders are selling their tokens. It signals a change in market sentiment, indicating that investors are becoming less confident in the token’s long-term prospects.

PEPE Mean Dollar Invested Age. Source: Santiment

The surge in profit-taking activity among an asset’s LTHs is a bearish signal, indicating a loss of confidence among a cohort of investors known for weathering numerous headwinds. This shift may prompt short-term holders (STHs), often called “paper hands,” to sell their coins.

Since STHs hold a significant percentage of an asset’s circulating supply, their selling can further exacerbate downward pressure on the price.

PEPE Price Prediction: August 5 Low on the Horizon

If PEPE’s selling pressure intensifies, the coin could continue its decline. According to its Fibonacci Retracement readings, PEPE may fall an additional 35%, reaching $0.0000058 — a level last seen on August 5.