- The number of Pepe holders at a profit rose as the price rallied higher, bringing fears of selling pressure.
- The rally could see some consolidation in the coming weeks, but it has not yet ended, and traders should not be looking for a reversal here.
Pepe [PEPE] was an impressive performer in the memecoin market, up 87% in the past week. The powerful rally was accompanied by increased whale activity.
This could signal buying pressure, but the Santiment metrics AMBCrypto investigated here suggest some of it could be profit-taking.
PEPE breaks above yet another key resistance level- is it time for a reset?
Source: PEPE/USDT on TradingView
According to TradingView, PEPE surged past a critical resistance at $0.0000088, a level it last tested in late April.
The Fixed-Range Volume Profile showed that most 2025 trading occurred between $0.0000057 and $0.00001—this region now forms the Value Area.
The high volume bars showed bullish strength, and the OBV also advanced higher, making new highs for 2025, another firm bullish sign.
The Fibonacci levels were respected during PEPE’s downward trend.
On the way upward, the 78.6% level was smashed aside without much hassle. The 61.8% level at $0.0000144 halted the bulls for a couple of days.
At press time, the token was headed above this level, too. The next target was the $0.0000171 level, which had acted as support in early January.
Unrealized gains = Real risk
The on-chain metrics showed that bullish sentiment was strong.
The 90-day MVRV Ratio was at highs not seen since November 2024. This could be a major worry for traders and investors.
Because the large profits that some holders have not yet realized suggested that a wave of selling pressure could be imminent.
The Mean Coin Age of PEPE attempted to trend higher in April, but has slipped lower over the past three weeks. This was a sign of distribution and selling.
The Percent of Total Supply in Profit was also higher than it had been since January. However, it was not as high as it had been in November.
At press time, around 35.6% of the Circulating Supply was in profit. Figures higher than 90% would be cause for concern of a multi-month correction.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
