How PEPE Price Hitting New All-Time High Could Lead to Major Corrections

5 months ago 3

ARTICLE AD BOX

PEPE’s price continued to please its holders, as the meme coin not only led the rallying altcoins but also marked a new all-time high in the last 24 hours.

However, this could trigger the altcoin observing a decline as investors look primed to sell.

PEPE Investors Close to Selling

Following the PEPE price rise, the meme coin looks prepared to see some major selling as the altcoin investors realize massive profits. According to the Network Realized Profit/Loss indicator, the overall gains have been inclining for the past month.

Realized profits are a sign that the investors are selling, and this could now intensify as the meme coin hits a new ATH. This seems to have saturated the bullishness and may lead to heavy selling.

Secondly, the Market Value to Realized Value (MVRV) Ratio also hints at profit-taking. The MVRV ratio monitors investor profits and losses. With PEPE’s 30-day MVRV at 38%, indicating profit, selling may ensue.

Historically, the meme coin has undergone corrections at MVRV levels of 15% to 36%, marking it as a danger zone. PEPE is already above this level, which signifies stronger profit-taking potential.

Should this happen, the altcoin could note a fall below key support.

PEPE Price Prediction: Awaiting a Dip

PEPE price market t he new ATH of $0.00001430 after rising by 51% in the last two days. At the time of writing, the altcoin is not exhibiting any signs of a decline, but considering the above indicators, it could occur soon.

The most likely outcome would be a fall to $0.00001251, which marks the 78.6% Fibonacci Retracement. Intense selling could extend this decline and PEPE could dip to the 61.8% Fib line at $0.00001146.

This line is known to be a bull market support floor, so losing it would wipe away a chunk of the recent profits.

But if PEPE bounces off this support floor, the meme coin could have a shot at reinitiating recovery. The same happened in mid-May before the altcoin jumped, which could invalidate the bearish thesis.

The post How PEPE Price Hitting New All-Time High Could Lead to Major Corrections appeared first on BeInCrypto.

Read Entire Article