PEPE: Profit taking triggers a fall in prices? Investors make profits up to 92%

• The meme coin is down more than 6% in the last 24 hours.
• Market indicators and metrics suggest further price declines.

Pepe (PEPE) experienced a major setback on May 18 as the price of meme coins saw a sharp decline. A check of its metrics highlighted a few possible reasons behind this bearish price action.

Let’s take a look at the whole picture.

Do PEPE investors make profits?

CoinMarketCap data revealed that the price of PEPE has started to fall sharply over the past few hours. For this reason, the daily price of the same coin fell by more than 6%.

At the time of writing, it was trading at $0.000009426 with a market cap of over $3.9 billion, making it the 27th largest crypto.

AMBCrypto’s take on IntoTheBlock data revealed a possible reason behind this. We found that more than 92% of PEPE investors made profits.

This could have prompted investors to sell their holdings, which would have driven down the price of the meme coin.

To see if this was the case, AMBCrypto then analyzed data from Santiment. According to our analysis, the influx of meme coin exchanges increased several times last week.

It was interesting to note that after a decline, the supply of meme coins on exchanges began to increase. Meanwhile, its supply outside exchanges began to decline on May 18, signaling a sell-off.

Additionally, after a sharp rise on May 14, the supply of meme coins held by top addresses decreased slightly.

This suggests that a few whales have also sold their holdings, which could cause the price of the meme coin to fall.

PEPE’s troubles are not over

The dark days could continue for the same coin, as few other metrics give a bearish idea.

For example, PEPE’s social volume has declined sharply over the past week, reflecting a decline in popularity of the meme coin. On top of that, his level-headed sentiment has also dropped over the past few days.

Thus, the bearish sentiment around the meme coin was high, indicating that investors were expecting its price to fall further.

Much like the metrics, several market indicators also supported the declines. The relative strength index (RSI) of the meme coin recorded a decline. At press time, the RSI had a value of 58.7.

Likewise, the Chaikin Money Flow (CMF) also declined, indicating that the chances of the downward price trend continuing were high.

Realistic or not, here is Market capitalization of PEPE in terms of BTC

According to our analysis, PEPE price was still well above its 20-day exponential moving average (EMA).

Therefore, if the price decline continues, the value of the meme coin could drop to its 20-day EMA, which could act as support.