$PEPE
🚨 Unrealized Profit Confirms Crash for Pepe Coin 🚨
From an on-chain perspective, PEPE’s Market Value to Realized Value (MVRV) ratio chart reveals strong reversal chances. MVRV data shows the average return of holders compared to the token acquisition price. Higher ratios translate to higher unrealized profits and an increased likelihood of sell-offs. The 30-day MVRV ratio stands at 25.82% after taking a drop from a dangerously high level near 40%, marked in the MVRV chart. This reflects a minor cooldown in the bullish trend through profit booking.
Also, history shows that the danger zones 1 and 2 have often signaled top formations in the past. If history repeats, PEPE price is ready to drop lower.
With the pullback, the MVRV ratio is closer to the highlighted Danger Zone 1, near 20%, a level known for profit-taking measures taken by short-term holders. Following the bull run last week, short-term holders are left with significant unrealized gains, increasing the chances of rapid sell-offs in PEPE.
Hence, the heightened MVRV readings suggest a steeper correction fueled by the exit of short-term holders.