- The exchange supply of PEPE has increased in recent days.
- This indicates an increase in the token sell-off.
Meme coin Pepe [PEPE] faces a potential price disadvantage as supply spikes on exchanges, signaling a rally in profit-taking activity, data from Santiment has shown.
The increase in the token’s currency reserves comes amid the significant rise in its value in recent weeks. At the time of writing, PEPE was exchanging hands at $0.000009.
In the past week, its value has increased by 120%, ranking it as the asset with the most gains during that period, per CoinMarketCaps facts.
At the time of writing, there are 182 trillion PEPE tokens on crypto exchanges. This represented 43% of the altcoin’s total circulating supply of 423 trillion PEPE.
On-chain data obtained from Santiment showed that the supply of the meme coin on the exchanges increased by almost 5% over the past four days.
Conversely, supply outside the stock exchanges fell by 2% in the same period.
Source: Santiment
PEPE prints green for its holders
The current spike in PEPE sell-off is due to how profitable trades with the altcoin have become as the meme coin frenzy increases.
A review of PEPE transactions showed that the daily trade volume to loss ratio was 2.61 on March 9.
This indicated that on that day, for every PEPE trade that ended in a loss, 2.61 trades produced a profit. Measured against a 30-day moving average, this ratio remained positive at 1.65.
Furthermore, the market value to realized value ratio (MVRV), which measures whether an asset is overvalued or undervalued, stood at 347.63% at the time of writing.
An MVRV ratio of 347% indicates that the current market value of PEPE is on average 3.47 times higher than the average price at which coins last traded.
This means that investors who own the meme coin have realized significant profits on average, as the current market price is significantly higher than the price at which they acquired their holdings.
Source: Santiment
PEPE’s Awesome Oscillator, assessed on a one-day chart, showed only upward-leaning green bars, indicating that the current bullish trend is likely to continue in the short term.
This indicator measures market momentum and identifies potential trend reversals. When the green upward-pointing bars return, it suggests that bullish momentum in the market is strengthening.
Measurements of PEPE’s Directional Movement Index (DMI) also showed that the bulls are still in control of the market.
Realistic or not, here is the market cap of PEPE in terms of BTC
At the time of writing, the altcoin’s positive directional index (green) was significantly above the negative index (red).
Source: PEPE/USDT on TradingView
Finally, the Average Directional Index (yellow) at a high of 62.47 indicated that bears may find it challenging to regain control of the market in the near term.