How PEPE Price Hitting a New All-Time High Could Lead to Major Corrections

PEPE price continues to please holders as the meme coin not only led the altcoin rally but also recorded a new all-time high in the last 24 hours.

However, this could lead to a decline in the altcoin as investors appear ready to sell.

PEPE investors are about to sell

Following the PEPE price surge, the meme coin is expected to see significant sales as altcoin investors make massive profits. According to the network's Realized P/L indicator, overall gains have been trending over the past month.

Taking profits is a sign that investors are selling, and this could increase now as the meme coin hits a new ATH. This appears to have saturated the upside and could lead to strong selling.

Second, the market value to realized value ratio (MVRV) also indicates profit taking. The MVRV ratio monitors investors' profits and losses. With PEPE's 30-day MVRV at 38%, indicating a profit, a sell-off may ensue.

Historically, the meme has undergone corrections at MVRV levels of 15% to 36%, making it a danger zone. PEPE is already above this levelindicating stronger profit potential.

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If this happens, the altcoin could see a decline below major support.

PEPE price forecast: waiting for a drop

The PEPE price market stands at a new ATH of $0.00001430 after rising 51% over the past two days. At the time of writing, the altcoin shows no signs of decline, but considering the indicators above, it could happen soon.

The most likely outcome would be a decline to $0.00001251, which represents a 78.6% Fibonacci retracement. Heavy selling could extend this decline and PEPE could fall to the 61.8% Fibonacci line at $0.00001146.

This line is known to be the support floor of a bull market, so its loss will wipe out much of the recent profits.

Read more: Pepe (PEPE) Price Forecast for 2024, 2025, 2026, 2027

But if PEPE rebounds from this support floor, the coin itself could have a chance to restart the recovery. The same thing happened in mid-May before the altcoin surged, potentially invalidating the bearish thesis.