Short-term holders of PEPE with profits may hinder the effort to recover the upward trend
The increasing MDIA index highlights the stagnation of the network
Pepe [PEPE] has experienced increased volatility in the past ten days. Prices and sentiment dropped further as Bitcoin [BTC] fell 8.4% from October 7-10. Among the top 5 popular meme coins, PEPE recorded the second-largest increase in the past week.
Dogwifhat [WIF] topped the list after rising 17.7% in 7 days. PEPE increased by 5.5% during the same period. It also maintains a bullish technical structure on the daily timeframe, but can buyers continue their efforts?
The growth and activity of the network are driven by price increases
Source: Santiment
As the prices and activity of meme coins are mainly driven by their popularity, the negative price action in recent days has affected the daily active address metric. The growth of the network also saw a decline in October.
Selling pressure may not be over yet, at least in the short term. The 30-day MVRV remains around 0, although it has adjusted over the past two weeks. Therefore, any further price recovery may see profit-taking activity and some selling volume.
The long-term MVRV is also positive, which is not a concern. This metric has been positive since October 2023. This suggests that PEPE's performance has provided significant returns to holders, despite any events that may have occurred.
Concerns about market stagnation
Source: Santiment
The average age of coins over 90 days has continuously decreased since July. This reflects the allocation phase among 3-month holders. The average age of coins over 365 days has not been able to increase since the end of August.
This emphasizes the stable mobility of Token between addresses and is a sign of selling activity. Meanwhile, the average age of USD investment continues to trend upwards. The upward trend indicates an increasing stagnation of altcoins and the holding of them in the same wallets.
Once they start moving to newer wallets, the index may decline. This would be an early sign of optimistic pressure.
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