Pepe Coin has found itself struggling to gain traction despite a broader recovery in the cryptocurrency market and notable activity from major investors.
Summary
- The price of Pepe Coin remains volatile even as the overall crypto market begins to recover.
- Whales have intensified their purchases of Pepe, but this has not translated to price strength.
- Current technical indicators suggest potential further declines in the near future.
As of the latest update, Pepe (PEPE), the second-largest meme coin on the Ethereum (ETH) network, was trading at approximately $0.0000061, reflecting a significant decrease of 63% from its peak in August.
Recent analysis from Nansen indicates that whale investors are beginning to stockpile Pepe tokens once again, anticipating a rebound. They currently hold a staggering 4.19 trillion tokens, an increase of 800 billion since the low of 4.18 trillion in October.
This uptick in whale purchases suggests that the previous wave of selling may be waning, which is a positive sign for the coin’s potential recovery. Additionally, there has been a notable trend of investors moving their tokens away from exchanges. Nansen’s data reveals that exchange balances have decreased from a peak of 241 trillion tokens last month, down to 232 trillion, indicating a shift toward self-custody and a lack of immediate selling pressure.
However, despite the promising whale activity, Pepe Coin continues to face downward pressure. One contributing factor is the steep decline in the futures market’s open interest, which has dropped to $203 million, a far cry from September’s highs of $800 million. This decline suggests that traders are exercising caution and pulling back on leverage after a series of significant liquidations last month, which affected over 1.6 million traders and resulted in a collective loss of $20 billion, including $20 million for Pepe bulls on that fateful day.
Pepe Coin Price Technical Analysis
The technical landscape for Pepe Coin indicates a likelihood of further declines in the months ahead. Currently, the coin appears to be forming an inverse cup-and-handle pattern, a typical continuation signal. At present, it seems to be navigating through the ‘handle’ portion of this structure.
Additionally, Pepe Coin has created a notable head-and-shoulders pattern, with the ‘head’ positioned at $0.00002833, representing its all-time high. The ‘shoulders’ are located at $0.00001670, while the neckline rests at $0.000005920.
Crucially, the token remains below its 50-day and 100-day Exponential Moving Averages, indicating weakness. Consequently, the prevailing scenario suggests that Pepe Coin could continue its downward trajectory, with sellers potentially aiming for strong support around $0.000020, which is roughly 65% beneath its current trading levels.
