96.36% Of All PEPE Addresses Are Now In The Green

On-chain data shows more than 96% of PEPE Investors have entered into profits after the massive rally the memecoin has seen over the past week.

A recent analysis of on-chain data has revealed that an overwhelming majority, specifically 96.36%, of PEPE investors are currently experiencing net unrealized profits. This insight was shared by cryptocurrency researcher Vicakdo in a post on X.

To gain further perspective, let's examine the "Global In/Out of the Money" indicator from IntoTheBlock. This indicator provides valuable information regarding the number of addresses that purchased the cryptocurrency at specific historical price ranges.

To calculate the "cost basis" for each investor, IntoTheBlock utilizes on-chain data to determine the average deposit price of the coins in any wallet.

Based on this calculation, investors who have a cost basis higher than the current spot price are considered to be holding net unrealized losses. IntoTheBlock terminology defines addresses in this category as "out of the money."

Conversely, those with a cost basis lower than the asset's current value are assumed to be "in the money." Naturally, investors who are exactly breaking even on their investment at the current price would be considered to be "at the money."

The following chart presents the current distribution of PEPE investors across all three of these categories, highlighting how the different ranges compare in terms of the investors who share their cost basis at them.

In the graph, the size of the dot corresponds to the number of addresses with their average acquisition price within the corresponding range. Notably, all of the large dots are positioned below the current spot price, indicating that the majority of investors are in profit.

Delving deeper into the data, we observe that only 10 addresses are still holding at a net loss, which is a negligible amount compared to the 236,320 addresses in the green.

The remaining percentage of the cryptocurrency's holder base is currently at the money level, where the price is undergoing a retest of their shared average cost basis.

Generally, a retest of the cost basis is significant for any investor, as it can lead to a flip in their profit-loss situation. Consequently, investors can be more likely to show some reaction when such a retest takes place.

For instance, investors who are holding at a loss may be eagerly seeking an exit opportunity at their break-even point, so the asset retesting its price could cause it to encounter resistance.

Similarly, profit-seeking holders may instead react by buying when the price retests its neutral level, as they could believe the same level would be profitable in the future. Thus, these levels can provide support.

The strength of these resistance and support levels naturally lies in the number of addresses bought. Large circles are thick with investors, so their retest could cause a substantial reaction.

From the chart, it's evident that PEPE has little resistance ahead of itself now, so exploring higher levels shouldn't lead to the coin finding resistance from investors looking to exit at their break-even.

At these extreme profit levels, however, the chances of profit-taking become significant, so the main obstacle to rallies from here on out would be selloffs with the aim of profit realization.

PEPE Price

At the time of writing, PEPE is trading around $0.0000168, up 77% in the past week.