Despite the Sudden Drop, On-chain Data Shows That the Majority of Long-term Holders Are Holding

According to Coingape, the price of Pepe coin Despite the sudden drop, on-chain data shows that the majority of long-term holders are holding

The price of Pepe coin (PEPE) dropped sharply on Saturday as the memecoin market continues to struggle.

On-chain data, however, shows that the majority of long-term holders are holding on, with over 114,000 wallet addresses still in the red.

The price of PEPE fell by 7.2% in the past 24 hours, registering the worst performance among the top 40 crypto assets on Saturday.

The sell-off came after a U.S. presidential dinner sparked sudden protests and volatility in the crypto market.

The price of the Official Trump token dropped by 4.3% following the event, and the sell-off spread to other major tokens.

PEPE was also dragged along, registering sharp declines of 7.2% against BTC and 6.7% against ETH.

This suggests that the price drops were not part of profit-taking in the crypto market in general, but rather a direct response to the increased political risk perceived by token investors.

As of May 24, 2025, the price of PEPE is trading in the range of $0.00001379, with a daily price range between $0.00001371 to $0.00001517.

Why has the price of Pepe Coin fallen?

According to data from CoinGecko, PEPE has actually still recorded gains of 10.5% in the past 7 days, 7.1% in 14 days, and an impressive surge of 59% in the past month.

This means that the sell-off in the last 24 hours was most likely triggered by a new market catalyst.

The timing coincides with the fallout from Donald Trump’s dinner on Friday, which sparked a new debate over the legality and ethics of crypto projects affiliated with political figures.

It was reported that U.S. lawmakers rejected the Genius Act bill, a bill aimed at regulating USD-backed stablecoins. This rejection was triggered by Trump’s alleged direct financial interest in the crypto sector, following the launch of a USD1 stablecoin by the Trump-backed WLFI project.

The controversy comes shortly after Argentina’s President Javier Milei was criticized for his involvement with the Solana-based Libraecoin, which even sparked impeachment threats earlier this year.

A market capitalization loss of $620 million in just one day suggests that this negative context likely led large holders to choose to reduce risk from top-tier memecoins like PEPE in the past 24 hours.

114,000 Address Pepe Coin Still Keeps in Loss Position, a Sign of Investor Resilience

Despite the sharp 7.2% drop in PEPE price, on-chain data shows that most PEPE holders remain reluctant to sell their assets.

According to IntoTheBlock’s Global In/Out of the Money indicator, 113,590 addresses—about 25.71% of all current holders—are underwater.

This means that more than a quarter of the PEPE community still chooses to hold their coins despite the unrealized losses.

Historically, when a large number of investors are reluctant to exit during a sharp market decline, this is often considered a positive signal by strategic traders, for two main reasons:

Firstly, it shows that a large group of active investors see PEPE not as a short-term speculative token, but as a long-term asset. Secondly, it reflects the widespread confidence of holders in the early recovery potential of PEPE prices.

More importantly, with the price of PEPE currently trading near the weekly support level of $0.0012, and the majority of holders still recording weekly gains of 7%, the likelihood of a capitulation is low.

If the selling pressure triggered by the Trump dinner controversy subsides, these two key factors could encourage an influx of new investors looking to buy PEPE at low prices.

Pepe Coin Price Prediction: Elliott Wave Pattern Suggests Recovery Toward $0.000016 As Resilient Holders Hold On

The current price movement of PEPE shows the potential for a fifth wave (Wave 5) breakout rally towards $0.00001632, which could even continue to $0.00001845, based on the Elliott Wave structure formed on the daily chart.

Wave (Wave 4) was previously seen forming a bottom above an important support level around $0.000010, and the price is now thought to have entered the initial phase of Wave (Wave 5) formation.

With prices now stabilizing around $0.0001395, the market is showing a pattern of moving within a low volatility zone — a condition that is often the start of a bullish impulse.