Recently, the price of PEPE, a popular memcoin, reached its new historical high (ATH). However, despite this, there is a risk of a possible correction and further sales.
During the last rally, the PEPE price reached a historic high around $0.00000,991 about a week ago. However, it has since stabilized. During this time, the composition of meme token holders has changed, and a significant part of the offer has passed to short-term traders. Their share in the circulating supply increased from 8.2% to 22.4%.
This raises concerns, as such traders usually hold assets for less than a month. And the price approaching the $0.00001000 mark — a significant psychological level — makes further sales likely.
It is also worth noting that a significant part of PEPE's offer is concentrated among small holders who own small amounts of coins. Although these holders usually do not affect the price, their share of the offer has increased over the past two weeks. Addresses holding PEPE worth between $100 and $100,000 currently control about 68% of the total circulating supply.
At the same time, large investors are currently inactive. They do not accumulate or sell coins.
Taking into account all these factors, sharp price movements are possible if small short-term investors start selling to take profits. The bullish momentum has already weakened, so a new historical high may turn out to be the peak for PEPE.
In the future, if the price breaks the $0.00001000 mark and sales begin, there will probably be a price correction below the 50-day exponential moving average, in the direction of $0.00000633. In the event of a breakdown of this support level, the coin may reach lows around $0.00000500, thereby canceling a significant part of recent gains.
However, if sales after reaching $0.00001000 are minimal and the price holds at this level, a bearish scenario can be prevented
