PEPE’s value has risen by 500% in a few days, analysts expect it to fall

The value of the PEPE cryptocurrency has increased by 506% over the past 10 days. The third-largest cryptocurrency by market capitalization, memecoin, has reached a new all-time high, but investors are now moving their assets.

In addition to the general bullishness in the market, the price of PEPE has risen due to the fact that whales have suddenly started accumulating. Large players and retail investors have bought almost 48 trillion PEPE worth $ 385 million over the past 10 days.

However, investors in memecoins are using volatility to make a profit. Currently, 37% of the total supply of the asset is in the hands of short-term holders. These traders have been holding PEPE for less than a month and are therefore prone to sudden sales.

If the tokens do not pass into the hands of medium-term holders (addresses that hold the asset for 6 to 12 months), the newly acquired 48 trillion PEPE may be under increased selling pressure as soon as the price starts to fall. Memcoins are often used to make quick profits, and then interest in the tokens fades. This leads to a sell-off.

Over the past week, popular memecoins such as Pepe, Floki, Bonk, and others have shown rapid growth. According to Santiment, as public interest and prices have changed significantly, many memtokens have reached new all-time highs (ATH). Along with the trading volume and sharp price increases, memecoins have also seen a significant surge in social activity.