PEPE appeared to have greater bullish potential based on price action, but its metrics sent warning signals.
- Hike in token movement for PEPE could be an early sign of selling pressure A whale cohort has been slowly accumulating DOGE since June
Dogecoin [DOGE] and PEPE were both down by close to 56% from the highs they made over the past six months. Now, although they have undergone a similar retracement since, the path to this moment has been quite different.
Source: DOGE/USDT on TradingView
Dogecoin saw a straightforward rally in February and March, one that has since retraced beneath the 78.6% Fibonacci retracement level at $0.107.
Source: PEPE/USDT on TradingView
On the other hand, PEPE halted its rally in March then rocketed higher in May, appearing to form two rallies. Measured from the base of the rally that began in February, it was only at its 61.8% Fibonacci retracement level.
This suggested that PEPE has greater bullish potential. Even so, AMBCrypto took a closer look at the on-chain metrics to understand if other pieces of evidence corroborated this idea.
PEPE flashed a warning signal over the past week
Source: Santiment
The Mean Coin Age (180d) of Dogecoin has been on a healthy uptrend since April. It began to slide lower over the past two weeks, but not by a significant amount. The dormant circulation saw a small hike on 30August too.
Together, they indicated a slight hike in selling pressure over the past few days. However, the Mean Dollar Invested Age continued to trend upwards, highlighting that DOGE may not be ready yet for a rally, Especially since newer coins haven’t re-entered circulation yet.
Source: Santiment
PEPE saw a significant drop in its Mean Coin Age, accompanied by a notable jump in the dormant circulation. This showed a relatively bigger wave of sell pressure.
The MDIA was similar in its trajectory and an uptrend did not seem to be on the cards yet.
Examining the supply distribution trends
Source: Santiment
The supply distribution revealed that Dogecoin wallets with more than 1 million, but especially more than 10 million, have been accumulating the memecoin since June.
While this is an encouraging sight, the 100 million and more wallet cohort has sold some of their holdings since June.
Source: Santiment
On the contrary, PEPE holders’ behavior did not give such discernible signals. The 100 million PEPE holding cohort has not trended as cleanly higher as the smaller holders, while the next biggest holders were on a slow downtrend.
Overall, the on-chain metrics tended to favor Dogecoin while the price action was in favor of PEPE on the higher timeframes.
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