Popular meme coin Pepe (PEPE) is under significant pressure, primarily driven by the profit-taking activity of its long-term holders (LTHs). It currently trades at $0.0000090, witnessing an 18% price decline over the past four days.

Two notable on-chain metrics reveal that previously dormant PEPE tokens held by its LTHs have begun to change hands. If this cohort of PEPE holders continues to sell, the meme coin may witness another double-digit decline.

Pepe Long-Term Holders Book Profits

The first metric indicating profit-taking among Pepe’s long-term holders (LTHs) is its Mean Coin Age. BeInCrypto’s analysis shows that this metric has declined by 1% since the beginning of October, currently standing at 300.

This metric calculates the average age of all coins held by addresses on the blockchain. A decline indicates that older coins are being sold or transferred, suggesting that long-term holders (LTHs) are beginning to liquidate their positions. This activity may be driven by profit-taking or a shift in market sentiment.

Read more: Pepe: A Comprehensive Guide to What It Is and How It Works

Furthermore, PEPE’s falling Mean Dollar Invested Age (MDIA), which measures the average age of a token’s holdings based on their dollar value, highlights the selling activity among its LTHs. At 153 at press time, it has noted a 4% decline since October 1.

A decreasing MDIA suggests that older, more established holders are selling their tokens. It signals a change in market sentiment, indicating that investors are becoming less confident in the token’s long-term prospects.

The surge in profit-taking activity among an asset’s LTHs is a bearish signal, indicating a loss of confidence among a cohort of investors known for weathering numerous headwinds. This shift may prompt short-term holders (STHs), often called “paper hands,” to sell their coins.

Since STHs hold a significant percentage of an asset’s circulating supply, their selling can further exacerbate downward pressure on the price.

PEPE Price Prediction: August 5 Low on the Horizon

If PEPE’s selling pressure intensifies, the coin could continue its decline. According to its Fibonacci Retracement readings, PEPE may fall an additional 35%, reaching $0.0000058 — a level last seen on August 5.

Read more: Pepe (PEPE) Price Prediction 2024/2025/2030

On the other hand, if PEPE’s LTHs refrain from selling their tokens and market sentiment improves, PEPE could reverse course. In that scenario, the coin may initiate an upward trend and attempt to break resistance at $0.000012.

Aptos’s APT coin has experienced a resurgence in buying activity following Franklin Templeton’s announcement of the expansion of its tokenized US Treasuries fund — the Franklin OnChain US Government Money Fund (FOBXX) — on the Layer-1 (L1) blockchain.

With a surging bullish bias toward the altcoin, it is poised to revisit its six-month high. This analysis explores how soon this may occur. 

Aptos Joins the FOBXX fund, APT Gains

On Wednesday, Franklin Templeton, a leading investment manager with over $1.4 trillion in assets, announced the launch of its FOBXX on the Aptos blockchain. This news drove APT to an intraday day high of $8.33. While the Aptos’ price has since shed some of these gains, it still notes a 1% hike over the past 24 hours. As of this writing, APT is trading at $7.96.

Furthermore, APT’s open interest has surged by 16% within the same period. This measures the total number of the coin’s outstanding futures or options contracts that have not been settled or closed. 

Read more: Where To Buy Aptos (APT): 5 Best Platforms for 2024

The combination of rising prices and increasing open interest often reflects bullish sentiment among traders. The willingness to add new positions indicates they expect the price movement to be sustained.

APT’s positive funding rate of 0.0074% supports this bullish outlook. A positive funding rate signifies bullish sentiment among traders. It suggests that more participants are confident in the price rise, leading them to take long positions. This can create upward pressure on the price of the underlying asset.

APT Price Prediction: Price May Break Above Crucial Resistance Level

APT’s rising Relative Strength Index (RSI) reflects the surge in demand for the altcoin. At press time, the indicator stands at 61.51.

The RSI measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a correction. Conversely, values below 30 indicate that the asset is oversold and may witness a correction.

At 62.99, APT’s RSI suggests that buying momentum is high and outweighs profit-taking activity. According to the coin’s Fibonacci Retracement tool, if this trend continues, APT’s next target is $10.11, a high it last reached in April. If it breaches this crucial resistance level, it may chart its course toward $19.48.

Read more: Aptos (APT) Price Prediction 2024/2025/2030

However, if the uptick in Aptos’ price prompts holders to begin profit-taking, the coin may lose some of its gains and drop toward its August 5 low of $4.32. 

EigenLayer’s native token, EIGEN, experienced a sharp price drop of 20% shortly after being listed on Binance and other top exchanges. Despite initial excitement surrounding the listing, concerns over transparency quickly shifted market sentiment. 

These issues appear to have harmed the token’s potential growth, causing uncertainty among new and existing investors.

Eigen Labs Under Fire

EigenLayer made headlines ahead of the listing of its native token, EIGEN. However, following the listing, the token made headlines again, but for a different reason. The network’s developers, Eigen Labs, were criticized for their lack of transparency regarding the staking of the token.

Generally tokens issued to the investors of the project are locked up as to prevent a pump and dump. These tokens are then gradually unlocked over time known as the “vesting period” only after which are investors allowed to trade or sell them.

Read More: What Is EigenLayer?

Interestingly this is not the case with EIGEN as investors were already allowed to stake their “locked up” tokens. While this was not initially communicated by Eigen Labs, it was simply added to their update documents.

This led to a massive uproar in the community, in response to which Eigen Labs provided clarity on Wednesday.

“Investors are allowed to stake both EIGEN and non-EIGEN assets on EigenLayer. Contracts with investors required that investors be permitted to stake EIGEN and that any rewards be unlocked. The maximum all EIGEN stakers can get annually is 1% of total initial EIGEN supply.  This is claimable weekly and takes a whole year to get linearly released.  This 1% includes all EIGEN stakers, including investors,” Eigen Labs stated in a post.

The developers also noted that the investors were not eligible for stakedrops and prohibited the Eigen Labs and Eigen Foundation teams from participating but were allowed to stake from the first day.

As a result of this controversy, EigenLayer’s network growth has suffered significantly. This metric, which tracks the rate at which new addresses are formed on the network, is often used to measure a project’s traction.

Within 24 hours, network growth dropped by 91%, signaling that new investors are losing confidence. This decline in interest may be directly tied to the ongoing transparency controversy, which is creating hesitation among potential investors.

The drastic drop in new addresses is a worrying sign for EigenLayer’s future, as network growth is a key indicator of long-term success. If the project fails to address these transparency concerns, the token’s market position may weaken further.

EIGEN Price Prediction: Expect the Unexpected

EIGEN’s price plummeted from $4.15 to $3.34, marking a 19% decline within a single day after its listing. This sharp drop highlights the volatility and skepticism surrounding the token, especially following its debut on major exchanges.

While the bearish sentiment may persist, the likelihood of EIGEN reclaiming $3.75 as support remains low due to ongoing investor skepticism. This uncertainty could lead to further price drawdowns if confidence isn’t restored quickly.

Read More: How to Participate in an EigenLayer Airdrop: A Step-by-Step Guide

If EIGEN loses the $3.25 support level, the altcoin may face additional losses. However, breaching $3.47 and flipping $3.75 into support could invalidate the short-term bearish outlook and reignite investor interest. For now, market sentiment remains fragile, with investors closely monitoring transparency developments.