PEPE price is sitting in the league of most of the other altcoins as it continues to struggle to break past a key barrier.

In the case of this meme coin, the concern is higher since any potential rise will lead to immediate selling.

PEPE Investors Are Looking for Profits

PEPE price at $0.00001205 is consolidated under $0.00001369. This level holds considerable value as the meme coin reaching it would lead to considerable gains for investors. According to the Global In/Out of the Money (GIOM) indicator, about 56.48 trillion PEPE is on the verge of turning profitable.

This supply was bought by investors between $0.00001100 and $0.00001300 and is nearing absolute profits. Once the meme coin hits the upper limit of the consolidation zone, about $628 million worth of PEPE would bear gains to its holders.

Despite being a potentially positive event, it is not necessarily bullish for meme coin investors. They are likely to sell their holdings to secure gains and avoid losses, especially if broader market trends remain bearish.

Further substantiating this outcome is the Market Value to Realized Value (MVRV) ratio.The MVRV ratio assesses investor profit and loss. 

Currently, PEPE’s 30-day MVRV stands at 15%, indicating profitability and possible selling pressure. Historically, PEPE tends to correct when the MVRV is between 18% and 48%, often called the danger zone. 

Thus once the profits rise, the meme coin will be in this danger zone with the next move being a drawdown.

PEPE Price Prediction: No Way Up

PEPE price trading at $0.00001205 will by the looks of it remain consolidated until the broader market cues turn bullish. The reason behind this is the aforementioned threat of selling as profit booking could take place before $0.00001369 resistance is breached.

Thus, not only will the uptrend not be reclaimed as support, but the barrier at $0.00001369 will also remain unbroken.

However, in the event that selling exceeds expectations, a dip below $0.00001146 is very likely. This will send PEPE price to $0.00001007, invalidating the neutral thesis and extending the losses.

Source : BeInCrypto - Jul 28, 2024