69% Of PEPE Holders Left In Profits After 26% Plunge
18 April 2024 - 4:30AM
NEWSBTC
On-chain data shows the percentage of the PEPE investors currently
in the green has fallen to 69% after the 26% plunge the memecoin
has seen in the past week. 69% Of All PEPE Addresses Are Carrying
Some Gains Right Now In a new post on X, the market intelligence
platform IntoTheBlock has posted an update on how the investor
profitability is looking for the memecoin PEPE currently. Related
Reading: Bitcoin Long-Term Holders Slow Down After 700,000 BTC
Selloff, Reversal Sign? The analytics firm’s metric gauges whether
a holder is in profit or not by reviewing their address’s on-chain
history. Based on when the wallet acquired the coins, the indicator
calculates the investor’s average cost basis using the spot
price of the asset at the time of those purchases. If the current
spot value of the cryptocurrency is higher than this average cost
basis for any address, then that particular investor is carrying
net gains currently. IntoTheBlock categorizes such addresses to be
“in the money.” Similarly, investors with a cost basis higher than
the latest price are considered “out of the money.” Naturally, the
two values being exactly equal would suggest the holder is just
breaking even on their investment or is “at the money.” Now, here
is the data shared by the analytics firm that shows how this
investor breakdown looks like for PEPE at the moment: The
profit-loss status of the investors owning the memecoin | Source:
IntoTheBlock on X As is visible above, 69% of the total addresses
holding PEPE have their cost basis higher than the current spot
price of the coin, while 27% are in losses. 4% of the investors are
sitting on their cost basis right now. This profitability ratio
isn’t that high, as, for example, 89% of Bitcoin investors are
currently in profit, according to IntoTheBlock data. The reason
behind the lower profits for the memecoin is that its price has
seen a steep drawdown recently. Historically, the addresses in the
green have been more likely to sell to harvest their gains. As
such, when the market profit-loss balance is overwhelmingly towards
profits, a mass selloff can occur. Naturally, this means the
chances of a top being hit increase with increasing investor
profits. However, a low percentage of investors being in profits
can be conducive to bottoms forming, as profit-selling exhausts at
these levels. Related Reading: Bitcoin Has Next Major Demand Zone
At $56,000: Brace For Impact? At present, PEPE is neither dominated
by green investors nor red ones. In bull runs, however,
profitability levels generally remain higher, so any cooldown can
help prices rebound. Thus, the fact that investor profitability has
returned to the 69% level for the memecoin could be a sign that a
bottom is close if the bullish regime has to continue. PEPE Price
PEPE has returned to the $0.0000050913 mark after having declined
more than 26% over the last seven days. The chart below shows the
memecoin’s performance over the past month. Looks like the price of
the coin has witnessed a steep decline over the last few days |
Source: PEPEUSD on TradingView Featured image from
Shutterstock.com, IntoTheBlock.com, chart from TradingView.com
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