Pepe Coin continues to face significant challenges in the crypto market, as on-chain indicators and a bearish technical outlook suggest further price declines may be on the horizon in the upcoming weeks or months.
Overview
- Pepe Coin appears unlikely to benefit from the current Uptober rally.
- The token has established a descending triangle pattern on its daily chart.
- Whale and institutional investors are actively offloading the token.
As of Thursday, October 2, Pepe Coin (PEPE) is trading at $0.000010, marking a 40% decrease from its peak in May of this year. Its market capitalization has plummeted to over $4.2 billion, down from a previous all-time high exceeding $10 billion.
Technical Analysis of Pepe Coin Price
The daily chart indicates that Pepe Coin reached a high of $0.00001645 on May 23 during a market rally. Since then, the token has established a series of lower price points, with its attempts to recover encountering significant resistance.
Currently, the token has formed a descending triangle pattern characterized by a downward-facing trendline and a critical horizontal support line at $0.0000091. This support aligns with the key support level indicated by the Murrey Math Lines tool.
Descending triangle patterns typically foreshadow a bearish breakout, which is usually confirmed when the price dips below the established support level. Should such a breakdown occur, the next major support level to monitor would be around $0.00000759, marking its lowest level from May of the previous year and indicating extreme oversold conditions.
A bullish outlook for Pepe Coin would materialize if the token manages to break above the descending trendline of the triangle pattern, potentially allowing for a rally toward the psychological resistance level of $0.000015.
On-Chain Trends Indicative of Whale Activity
Another significant factor contributing to the bearish sentiment surrounding Pepe Coin is the sustained selling pressure from large-scale investors, or “whales.” Their activity suggests expectations of continued price declines.
Data from Nansen reveals that whale holdings of Pepe Coin have decreased by 22% over the past 30 days, shrinking from 7.5 trillion tokens to 6.11 trillion. This decline is historically viewed as a bearish indicator.
Similarly, smart money investors have reduced their positions by 65% in the same timeframe, now holding just 912 billion tokens. Public figures active in the market have also cut their holdings by a comparable percentage.
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