The blockchain intelligence firm Santiment shared their latest insights report for Pepe (PEPE) in a tweet this morning. This report comes after PEPE’s price had pulled back significantly following its +1,200% rally between 29 April and 5 May of this year.
According to Santiment’s insights, eager investors had attempted to buy the recent dip in the crypto’s price with the hope that it would continue its impressive bullish streak. Unfortunately, these efforts to buy the dip have not been very effective, since large addresses have continued to sell their PEPE holdings, the report added.
This resulted in the meme coin’s price dropping almost as quickly as it ascended, dropping around 65% since its all-time high (ATH) on 5 May. According to the report, the firm’s social dominance metric had forecasted the altcoin’s price drop perfectly.
The indicator had shown that PEPE’s social dominance had dropped from 5% to between 1-2% hours before it set its ATH. This suggested that traders started to shift their attention from PEPE to other altcoins.
Amount of active addresses for PEPE leading up to its ATH (Source: Santiment)
Furthermore, the amount of unique addresses holding PEPE also soared leading up to its price top. However, a closer look at this on-chain metric revealed that large addresses had started selling their holdings shortly before the crypto’s price reached its peak.
Santiment also cautioned that an increase in the number of large addresses holding 100 million PEPE or more will be an early indication of a second dump in the short term. This second sell-off is predicted to not be as violent as the previous one, however.
At press time, PEPE was trading at $0.000001116 at press time and was down more than 36% according to CoinMarketCap. The altcoin had also weakened against the two crypto market leaders in the previous 24 hours, and was down 33.80% against Bitcoin (BTC) and 33.60% against Ethereum (ETH).
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Source: Cryptocurrency - investing.com
