PEPE, the world’s third-largest meme coin, has absolutely gone vertical over the past week, surging an incredible 506% to reach an all-time high of $0.000008518. This parabolic ascent injects a much-needed dose of excitement into the previously downtrodden meme coin sector.
Bolstering PEPE’s violent move higher is a torrent of new money flooding into the asset. According to on-chain analytics, PEPE whales and investors have collectively purchased nearly $385 million worth of tokens over the past 10 days, equating to 48 trillion PEPE changing hands.
It’s no surprise, then, that PEPE cracked its previous peak price and more than quintupled in value amidst this buying frenzy. However, its meteoritic rise looks clearly unsustainable, judging by just how heavily short-term speculators have become concentrated.
Right now, short-term holders of less than one month account for a staggering 37% of PEPE’s circulating supply. These traders tend to have weak hands and minimal loyalty towards meme coin projects, coming only to turn quick profits.
Ominous Signs of a Pepe Coin Selloff
Even more worryingly, overall holder loyalty towards PEPE appears to be declining rapidly during its vertical ascent. The mean coin age metric, which measures typical hold periods, has plunged over the past week—usually a precursor to an impending correction.
With so much supply stacked in the hands of fickle short-term traders driven only by greed rather than belief in the project, the odds of a violent PEPE pullback are rising. These holders could rush towards the exit if upside momentum stalls over the coming days.
Thus, while further near-term rallies up to $0.00000959 seem achievable if exuberance continues, reality may soon catch up to PEPE. Once the meme coin rolls over, analysts anticipate potential 40%+ crashes given the obvious lack of conviction amongst those recently piling in. Enjoy the profits while they last!
