$PEPE
🚨 Unrealized Profit Confirms Potential Crash for Pepe Coin 🚨
From an on-chain perspective, PEPE’s Market Value to Realized Value (MVRV) ratio chart shows a strong chance of a trend reversal. MVRV data depicts the average unrealized profit of token holders compared to the price at which they purchased them.
A higher ratio means greater unrealized profits, which increases the likelihood of a mass sell-off.
Currently, the 30-day MVRV ratio stands at 25.82%, having previously fallen from extreme levels near 40% marked on the MVRV chart. This decline reflects a minor cooling phase in the bullish trend due to profit-taking.
In addition, historical records show that Danger Zones 1 and 2 have often been indicators of price tops forming in the past. If this pattern repeats itself, the price of PEPE has the potential to drop further.
With this decline, the MVRV ratio is now close to Danger Zone 1, which stands at around 20% – a level often associated with profit-taking by short-term holders.
After last week’s price surge, many short-term holders now have large unrealized gains, increasing the risk of a quick sell-off of PEPE.
Therefore, a high MVRV ratio indicates the potential for a sharper correction due to the exit of short-term holders.
