Cryptocurrency Pepe (PEPE) may be in for a second sell-off in the short term, according according to blockchain intelligence firm, Santiment. The firm shared their latest insights report for PEPE in a tweet this morning, following the altcoin's 1200% rally between 29 April and 5 May this year.

The report suggests that investors attempted to buy the dip in the crypto's price in the hope the bullish streak would continue - unfortunately these efforts were for naught. Large addresses have been identified as major sellers of PEPE holdings, leading to a 65% price drop from its all-time high.

Santiment's social dominance metric had accurately predicted this drop, with it declining from 5% to between 1-2% before the altcoin set its ATH. This indicated traders moving away from PEPE and to other altcoins. Additionally, a closer look at the on-chain metric for unique addresses holding PEPE revealed large addresses starting to sell holdings before the crypto's peak.

In anticipation of a potential second dump, Santiment has cautioned traders of an increase in the number of large address holding 100 million PEPE or more. While the drop won't be as severe as the previous one, investors should still remain vigilant. At press time, PEPE is trading at $0.000001116 and has decreased in value against both Bitcoin and Ethereum, respectively by 33.80% and 33.60%.



Other News from Today