- May 27, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
On-chain data shows more than 96% of PEPE Investors have entered into profits after the massive rally the memecoin has seen over the past week.
96.36% Of All PEPE Addresses Are Now In The Green
As pointed out by cryptocurrency researcher Vicakdo in a post on X, an extreme majority of the PEPE investors are holding some net unrealized profits right now.
Relevant here is the “Global In/Out of the Money” indicator from the market intelligence platform IntoTheBlock, which tells us how many addresses were bought at which historical price range of the cryptocurrency.
To calculate the “cost basis” of any investor, the analytics firm uses on-chain data to determine the average deposit price of the coins in any wallet.
Investors who have this price higher than the current spot price are considered to be holding net unrealized losses. IntoTheBlock terms include addresses such as “out of the money.”
Similarly, those with a cost basis lower than the asset’s current value are assumed to be “in the money.” Naturally, investors who are exactly breaking even on their investment at the current price would be considered to be “at the money.”
The chart below shows the current distribution of PEPE investors across all three of these categories, as well as how the different ranges compare in terms of the investors who share their cost basis at them.
In the graph, the size of the dot correlates to the number of addresses with their average acquisition price inside the corresponding range. It would appear that all of the large dots are below the current spot price, meaning that most investors are in profit.
More specifically, 96.36% of all PEPE investors are currently in the money. Only 10 addresses are still holding at a net loss, which is negligible compared to the 236,320 addresses in the green.
The remaining percentage of the cryptocurrency’s holder base is currently at the money level, meaning the price is going through a retest of their shared average cost basis.
Generally, a retest of the cost basis is important for any investor, as it can lead to a flip in their profit-loss situation. As such, investors can be more likely to show some reaction when such a retest takes place.
Investors who are holding at a loss may be desperate for an exit opportunity at their break-even, so the asset retesting its price could cause it to feel resistance.
Similarly, profit-seeking holders may instead react by buying when the price retests its neutral level, as they could believe the same level would be profitable in the future. Thus, these levels can provide support.
The strength of these resistance and support levels naturally lies in the number of addresses bought. Large circles are thick with investors, so their retest could cause a significant reaction.
From the chart, it’s apparent that PEPE has little resistance ahead of itself now, so exploring higher levels shouldn’t lead to the coin finding resistance from investors looking to exit at their break-even.
At these extreme profit levels, however, the chances of profit-taking become significant, so the main obstacle to rallies from here on out would be selloffs with the aim of profit realization.
PEPE Price
At the time of writing, PEPE is trading around $0.0000168, up 77% in the past week.