Pepe Coin, the third-largest meme coin by market capitalization, has experienced a notable price rebound, surging over 40% from its December lows. However, recent market data suggests that the coin may be at risk of a downturn as key indicators show weakening sentiment among investors and signs of a potential bearish breakout.
Top Holders Scaling Back and Declining Activity
A closer look at recent data reveals that large holders, or “whales,” are beginning to scale back their positions in Pepe Coin. According to Santiment, the supply held by top addresses has dropped significantly, from over 45 billion tokens to 39.78 billion in just a few weeks. This shift suggests that some major investors are exiting their positions, potentially contributing to future price weakness.
Additionally, activity on the network is also on the decline. Data from IntoTheBlock shows a 13.21% drop in new addresses over the past week, while active addresses have decreased by 3.90%. These diminishing user numbers indicate that investor sentiment may be turning negative, with many anticipating further price declines.
Bearish Chart Patterns Point to Potential Crash
From a technical analysis perspective, Pepe Coin’s price chart is displaying concerning signs. The 4-hour chart reveals a double-top pattern at $0.00002190, which is a key resistance level along the 50% Fibonacci retracement. More troubling is the formation of a rising wedge pattern, typically signaling a bearish breakout when the price breaks below the lower trendline. This scenario could trigger a significant sell-off.
Potential Price Targets and Outlook
If Pepe Coin breaks below the lower trendline and the 50-period moving average at $0.00002020, it could see a sharp decline toward the December low of $0.00001433—around 30% lower than the current price. However, if the price rises above the resistance at $0.00002190, a rebound could push it to the psychological level of $0.00002535, marking a 22% upside potential.
Also Read: Pepe Coin Price Targeted for 120% Rally: Could It Hit $0.00004 Amid Meme Coin Surge?
As Pepe Coin faces this critical juncture, investors should monitor these key levels for signs of the next major price movement.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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